Overseas Pakistanis Sent $3 Billion+ to Homeland in January
- Sara Habib
- February 12, 2025
- 11:17 am
- 171
- Current Affairs
Pakistan received $3 billion in remittances in January 2025. This is a 25.2% increase compared to January last year. It also marks the fourth consecutive month of a current account surplus. From July 2024 to January 2025 (7MFY25), total remittances stood at $20.8 billion. This is 31.7% higher than the $15.8 billion received during the same period last year. Most of this money came from Pakistanis in Saudi Arabia, the UAE, the UK, and the US.
Why Are Remittances Rising?
Experts say this growth trend may continue. Remittances for FY25 might cross $35 billion. Several factors contribute to this increase:
More job opportunities abroad for Pakistani workers.
Government policies encouraging legal money transfers.
Better exchange rates attracting more remittances.
Many overseas Pakistanis send money home regularly. Their families depend on this income for daily expenses, education, and savings.
Economic Benefits of Remittances
The increase in remittances is helping Pakistan’s economy. It strengthens the financial position of the country. It also supports families who rely on funds from abroad.
Additionally, steady remittances are reducing pressure on Pakistan’s external accounts. This provides some relief in managing economic challenges. More remittances mean higher foreign reserves, which improve financial stability.
Concerns About Brain Drain
Some experts worry about brain drain. More skilled workers are leaving Pakistan for better opportunities. While they send money back, their absence could affect local industries and innovation. However, as long as remittances grow, they remain a key source of foreign exchange.
Conclusion
Pakistan’s rising remittances are a positive economic sign. They provide financial support to families and help the country’s economy. While concerns about brain drain exist, the benefits of higher remittances outweigh the risks. The trend suggests that Pakistan’s foreign exchange reserves will remain stable in the coming months.
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