• Inflows surge to $17.8bn in six months; $3.1bn in December
• PM says increase reflects strong commitment from overseas workers
• Seeks swift disposal of legal cases on FBR revenue collection
KARACHI: Remittances from overseas Pakistanis reached $17.845 billion in the first half of the ongoing fiscal year, achieving half of the annual target of $35bn.
The State Bank of Pakistan (SBP) said on Friday that the inflows marked a 33 per cent increase compared to $13.435bn received during the same period last year, reflecting an additional $4.41bn.
Remittances in December alone totalled $3.1bn, a 29.3pc increase from the same month last year and a 5.6pc rise from November 2025.
Only a day ago, SBP Governor Jameel Ahmad expressed confidence that the $35bn target for FY25 would be achieved, noting that the inflows could surpass the country’s export earnings, which grew by approximately 10pc in the same period.
Despite significant inflows from the UK, United States and European Union countries, 55pc of the total inflows ($9.8bn) came from Arab countries during the first six months through December.
Saudi Arabia led with $4.42bn, up 36pc from last year, while the UAE recorded the highest growth at 54pc, with inflows totalling $3.58bn.
Inflows from Gulf Cooperation Council (GCC) countries — Bahrain, Kuwait, Qatar, Oman — rose by 20.5pc to $1.79bn.
Remittances from the EU exceeded those from GCC countries, reaching $2.13bn, showing an increase of 26pc. The UK contributed $2.64bn, up 32.7pc, while the US accounted for $1.77bn, a 12.5pc rise.
Experts attributed the surge to several factors, including a crackdown on the Hundi and Hawala systems, almost no dollar smuggling to Afghanistan and Iran, stricter controls on exchange companies and exchange rate stability, which boosted confidence among remitters.
Declining property prices in Pakistan also attracted investment from overseas Pakistanis. Besides, over a million Pakistanis who emigrated in 2023 may have started contributing remittances.
The government views the increased overseas workforce as favourable, even as concerns are raised about the “brain drain” of talent. Pakistan remains the third-largest contributor to tech-based freelance trade, though the exodus of companies to Dubai, partly due to internet slowdowns, has been a challenge.
PM felicitates nation
Prime Minister Shehbaz Sharif on Friday congratulated the nation on the increase in remittances in December, insisting that the claims of those who had been chanting to halt the country’s economy “have proven to be baseless”.
In a press statement, the prime minister said the remittances witnessed a “record growth of 29.3pc in December 2024 against same month (December 2023) of last year”, which he said reflected the “strong commitment of the overseas Pakistanis for playing their role in the development of the country”.
After achieving economic stability, Pakistan is now on the path of economic growth, the prime minister said, adding that the government was determined to ensure national development and public welfare.
Meanwhile, PTI’s Central Secretary Information Sheikh Waqas Akram said on Friday that Pakistan’s economy, remittances and inflation were much better under the rule of his party as compared to the current setup and rejected the federal government’s claims regarding the economic turnaround, dismissing them as “jugglery of words”.
Tax tribunals
Earlier, the PM directed the authorities concerned to appoint a talented workforce in the appellate tribunals to ensure the swift disposal of legal cases regarding the Federal Board of Revenue’s revenue collection.
The prime minister, chairing a meeting to review the matters regarding the appellate tribunals, called for necessary measures to clear the backlog of cases and warned against any laxity.
He said people of international calibre should be recruited in the tribunals, which should offer them competitive salaries and perks in accordance with their professional capabilities.
He told the participants that work on FBR reforms was going at a fast pace and a Faceless Customs Assessment System had been installed at the Karachi Port to curb corruption and considerably reduce clearance time.
He reiterated the government’s resolve to bring the tax evaders under the tax net to avert the burden from the poor people.
In the briefing, the prime minister instructed the completion of reforms in the Inland Appellate Tribunals within the stipulated time.
Published in Dawn, January 11th, 2025
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