Karachi: Pakistan has secured the fifth position globally in foreign remittances, with inflows reaching a record $3.1 billion in February 2025, marking a 32% increase compared to February 2024. The rise in remittances has provided critical support to the country’s economy amid ongoing financial challenges.
According to Mian Zahid Hussain, Chairman of the National Business Group Pakistan and a key business leader, the steady increase in remittances highlights the vital role overseas Pakistanis play in stabilizing the economy. He emphasized the need for more incentives and streamlined processes to further encourage remittance inflows.
With four months remaining in the fiscal year, the Federal Board of Revenue (FBR) estimates that total remittances will reach $35 to $36 billion, a significant jump from $30.3 billion last year. Currently, remittances contribute around 7-8% of Pakistan’s GDP, directly supporting over 50 million people across the country.
Mian Zahid Hussain stressed the importance of skill development programs for Pakistanis seeking employment abroad. He noted that a large portion of migrant workers are unskilled, earning lower wages and consequently sending smaller remittances. Enhancing workforce skills would increase income levels and further boost remittance inflows.
He also urged the government to attract investments from overseas Pakistanis, particularly in the stock market and industrial sector, by offering capital protection guarantees. Strengthening the investment environment, improving the tax structure, and lowering energy costs would encourage expatriates to invest in Pakistan’s economy.
Globally, international remittances exceed $900 billion annually, with developing countries receiving a significant share. In 2023, low-income nations received $656 billion in remittances, but a substantial amount still moves through informal and unrecorded channels. Addressing this issue could further strengthen economic growth.
Among the world’s top recipients of remittances, India leads with $129 billion, followed by Mexico ($68 billion) and China ($50 billion). Pakistan remains a major beneficiary, underscoring the importance of remittances as a key pillar of its economic resilience.
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