SBP Data Shows Strong Remittance Inflows

Overseas workers sent $3.59 billion in remittances to Pakistan in December 2025, according to data released by the State Bank of Pakistan.

The inflow marked an increase of nearly 16.5% compared with the $3.1 billion recorded in December last year. On a monthly basis, remittances rose by 13% from $3.2 billion in November.

During the first six months of the current fiscal year, remittance inflows reached $19.7 billion, up from $17.8 billion in the same period of the previous year. This represented an increase of 11%.

In a note, Topline Securities said the growth momentum was supported by higher manpower exports in earlier years, a lower gap between formal and informal exchange markets, and the continuation of remittance incentive packages.

The firm said it had maintained its full-year remittance target of $41 billion for FY26, representing a 7.5% increase from the $38 billion recorded in FY25.

Remittances continue to play an important role in supporting Pakistan’s external account, boosting economic activity, and supplementing household incomes that rely on overseas earnings.

The government has been promoting remittances through incentives and formal channels to sustain steady inflows and support economic stability.

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The State Bank has previously noted that the Pakistan Remittance Initiative, launched in 2009, has worked to enhance remittances through formal channels. The number of financial institutions on the initiative’s network increased from about 25 in 2009 to more than 50 by 2024.

The initiative includes conventional banks, Islamic banks, microfinance banks, and exchange companies. Electronic Money Institutions are also permitted to receive remittances through banks, while the number of international entities involved has risen to around 400.

Saudi Arabia remained the largest source of remittances in December 2025, with overseas Pakistanis sending $813 million. The figure was 6% higher than a year earlier and 8% above the amount recorded in November.

Inflows from the United Arab Emirates rose to $726 million, reflecting a 15% increase compared with the same month last year.

Remittances from the United Kingdom totalled $560 million during the month, up 16% from November, while year-on-year inflows from the UK increased by 28%.

Overseas Pakistanis in the United States sent $302 million in December, representing a 1% decline year-on-year but a 9% rise compared with November.

Remittances from European Union countries stood at $499 million, marking a 39% increase on a yearly basis.