Key Points
- December remittances rise to $3.6 billion, up 16.5 per cent year on year
- Inflows increase by twelve point six per cent compared with November
- Saudi Arabia remains the largest source of remittances for six consecutive months
- First half of fiscal year records double-digit growth in inflows
ISLAMABAD: Workers’ remittances to Pakistan rose sharply in December, led once again by Saudi Arabia, which has remained the country’s largest source of inflows for six consecutive months, highlighting the sustained importance of overseas Pakistanis to the national economy.
According to data released by the State Bank of Pakistan, remittances amounted to $3.6 billion in December 2025. This represented an increase of 16.5 per cent compared with December 2024 and a rise of 12.6 per cent compared with November 2025.
Remittances are among Pakistan’s most critical sources of foreign exchange, providing steady support to the balance of payments, helping stabilise the rupee, and easing pressure on foreign exchange reserves. The inflows also finance essential imports and support household consumption at a time when Pakistan continues to manage external financing challenges under an International Monetary Fund programme.
Cumulatively, remittance inflows during the first half of the current fiscal year, from July to December 2025, reached $19.7 billion. This marked an increase of 10.6 per cent compared with $17.8 billion received during the same period of the previous fiscal year, reflecting resilient overseas earnings despite global economic uncertainty.
Saudi Arabia remained the single largest contributor in December, with overseas Pakistanis sending $813.1 million. The Kingdom has now topped Pakistan’s monthly remittance inflows throughout the first half of the fiscal year, from July to December. The United Arab Emirates followed with $726.1 million, the United Kingdom with $559.7 million, and the United States with $301.7 million.
Economists attribute the continued dominance of Saudi Arabia and other Gulf countries to sustained labour demand and a large Pakistani workforce in the region. Millions of Pakistanis employed abroad regularly send money home to support families and local economies, making remittances a stable and relatively predictable source of foreign exchange.
The government and the State Bank have promoted the use of formal banking channels in recent years, improving transparency and supporting consistent growth in inflows. Analysts say steady remittances reduce reliance on external borrowing and provide a crucial buffer against volatility in global financial markets.
