Workers’ remittances soar as more Pakistanis move abroad

KARACHI: A sharp rise in the number of Pakistanis moving abroad in recent years has been a key factor driving the steady increase in remittances to the South Asian country, analysts say.

Pakistan received over $30 billion in remittances in FY-24, reflecting a 10.7 per cent increase over the previous fiscal year, according to State Bank of Pakistan figures.

In February 2025, workers’ remittances totaled $3.1 billion, marking a 38.6 per cent year-on-year (YoY) increase and a 3.8 per cent month-on-month (MoM) rise.

Cumulatively, remittance inflows reached $24 billion during July-February FY25, up 32.5 per cent from $18.1 billion recorded in the same period of FY24, the central bank reported.

“Remittances have risen due to more people going abroad for work,” Saad Hanif, an analyst at Ismail Iqbal Securities, told HUM News English.

Hanif attributed the surge to the expansion of Roshan Digital Accounts (RDA), improved policy stability under the IMF program, and a crackdown on illegal money transfer channels like Hawala and Hundi.

According to the Bureau of Emigration & Overseas Employment (BEOE), 862,625 Pakistanis emigrated in 2023, up from 832,339 in 2022, reflecting a 3.6 per cent increase.

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“The primary driver of rising remittance inflows is the growing number of workers moving abroad,” Sana Tawfiq, Director of Research at Arif Habib Limited, told HUM News English.

“Additionally, the stability of the Pakistani rupee and administrative measures against Hawala and Hundi have encouraged overseas Pakistanis to send remittances through formal banking channels,” she added.

In 2020, nearly 6.3 million Pakistanis were living abroad, making Pakistan one of the top ten immigrant populations globally, according to a Pakistan Institute of Development Economics (PIDE) report. The institute noted that outmigration has surged by 86 per cent since 2000.

“The rise in remittances has been driven by a stable rupee, efforts to curb Hawala and Hundi transactions, a narrowing spread between interbank and open market exchange rates, and incentives for banks and exchange companies,” Muhammad Awais Ashraf, Director of Research at AKD Securities, told HUM News English.

“Additionally, increased emigration over the past two years has played a significant role in maintaining remittance inflows at around $3 billion per month,” he added.

Meanwhile, the former prime minister Imran Khan’s call last December for overseas Pakistanis to curb remittances as part of a civil disobedience movement had little impact, analysts say. The growing number of migrant workers and the fact that remittances remain a financial lifeline for families in Pakistan ensured that inflows continued uninterrupted.