Workers' remittances hit $3.1bln in February

KARACHI: Pakistan has received $3.1 billion in remittances from overseas workers in February 2025, ARY News reported, citing the State Bank of Pakistan (SBP).

While the inflow of workers’ remittances reflected a 38.6 percent year-on-year increase, it recorded a 3.8 percent on a month-on-month basis, according to the central bank.

Cumulatively, remittances during the July 2024 – February 2025 period of financial year 2025 reached $24 billion, a 32.5 percent rise compared to $18.1 billion in the same period of financial year 2024.

Saudi Arabia emerged as the largest contributor, with $744.4 million sent in February, followed by the UAE with $652.2 million and the UK with $501.8 million.

As per State Bank of Pakistan, the steady inflow of remittances from overseas Pakistanis continues to play a vital role in stabilising Pakistan’s economy and supporting households dependent on these funds.

The surge in remittances is attributed to several factors, including economic recovery, a stable rupee, and incentives provided to banks and exchange companies.

Additionally, the growing trend of skilled Pakistani workers emigrating has contributed to the increase in inflows. These remittances are a lifeline for Pakistan’s economy, helping to bridge the current account deficit and providing much-needed support to families amid rising inflation.

Earlier, The State Bank of Pakistan (SBP) announced that the policy rate would remain unchanged at 12 percent to maintain ongoing macroeconomic stability.

Following a significant reduction from 22 percent in June 2024, the rate now stands steady at 12 percent.

The Monetary Policy Committee (MPC) convened earlier in the day and opted to retain the policy rate, defying market expectations of a cut ranging from 50 to 100 basis points.

During the meeting, the MPC also highlighted potential challenges posed by rising food and energy prices, underscoring caution in the face of inflationary risks.

The bank’s current interest rate remains at 12 percent, while inflation in February reached its lowest level at 1.52%.

A Reuters survey, involving 14 analysts, had earlier predicted that the central bank might announce a further reduction in rates, with a median expectation of a 50-basis-point cut.