Remittances hit $3bn in Jan, driven by reforms, crackdown on illegal channels

Despite Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan's boycott call, remittances swelled 25.2% to $3 billion in January 2025, up from $2.397 billion recorded in the same period last year, the State Bank of Pakistan (SBP) said on Monday.

The surge is attributable to economic recovery, bolstered by the International Monetary Fund (IMF) bailout, stable rupee, incentives for banks and exchange companies, and the growing trend of skilled Pakistani workers emigrating.

Cumulatively, for the seven months (July-January) of fiscal year 2024-25 (7MFY25) remittances sent home by Pakistani diaspora, hit a massive $20.8 billion, up 31.7% than $15.8 billion in the same period of FY2024. However, January remittances came out 3.2% lower than the $3.1 billion recorded in December 2024.

According to analysts, key factors driving the increase in official inflows include reforms that have curbed illegal foreign exchange trading and incentives implemented by the SBP. Furthermore, global inflation rates have decreased, encouraging Pakistani migrants to send more money back home.

They also pointed out that with soaring inflation at home, families are relying more on financial support from relatives working abroad. The steady flow of remittances has been crucial in keeping the country’s external account stable.

Saudi Arabia led the January remittances with $728.3 million, down 5.5% month-on-month, but up 24% from $587.4 million in January last year-on-year.

United Arab Emirates saw a 0.37% uptick month-on-month, from $619.4 million in December to $621.7 million in January, jumping year-on-year by almost 53% against $407.6 million in the same month last year.

Inflows from the UK dropped 3% to $443.6 million from $456.9 million in the January 2024, while improving 22% year-on-year. On the other hand, remittances from the US increased 5% to $298.5 million month-on-month, according to the central bank.

PTI’s call for boycotting remittances

The former ruling party had announced a civil disobedience movement if their demands — the release of political prisoners and a judicial probe into the events of the May 9, 2023 and November 26 crackdown — go unmet. 

In December 2024, jailed PTI founder Imran Khan urged his supporters in Pakistan and abroad to kick off an anti-government movement by withholding remittances in its initial phase.

However, remittances sustained their surge, with the country not only posting a year-on-year increase in December but also recording a 5.6% jump from November 2024, as the government mocked the PTI leader’s failed call for a boycott.

Even the Prime Minister felicitated the nation on the record increase in foreign remittances. "The claims of those who had been chanting to halt the country’s economy had proven to be baseless," the premier said in a statement.

“Record increase in the foreign remittances reflects the strong commitment of the overseas Pakistanis for playing their role in the development of the country,” PM Shehbaz added.