Pakistan’s overseas workers sent a robust $3.59 billion in remittances in December 2025, marking a significant 16.5% increase from $3.1 billion in December 2024, according to State Bank of Pakistan (SBP) data released on January 9, 2026.
This surge, also up 13% from November’s $3.2 billion, underscores the vital role of diaspora contributions in supporting the nation’s external account amid ongoing economic challenges.
Strong Growth from Key Diaspora Countries
The inflows were led by Gulf nations and Western countries. Saudi Arabia contributed $813 million, a 6% year-on-year (YoY) rise, while the United Arab Emirates (UAE) sent $726 million, up 15% YoY. The United Kingdom emerged as a fast-growing source with $560 million, reflecting a 28% YoY increase, followed by the United States at $302 million and European Union countries at $499 million, which saw a remarkable 39% YoY growth.
These figures highlight the resilience of remittances from traditional host countries, driven by higher wages, seasonal factors, and government incentives promoting formal channels.
Half-Year Milestone and Broader Implications
For the first half of fiscal year 2025-26 (July-December 2025), total remittances reached $19.7 billion, an 11% increase over the $17.8 billion recorded in the same period last year.
This steady growth supports Pakistan’s foreign exchange reserves, stimulates economic activity, and supplements household incomes for millions of remittance-dependent families. The SBP attributes part of this success to initiatives like the Pakistan Remittance Initiative (PRI), which has expanded the network of financial institutions and international partners since 2009.
As remittances continue to outpace other external inflows, they remain a cornerstone of economic stability, helping mitigate balance-of-payments pressures and fostering sustainable development.