Workers’ remittances to Pakistan showed strong growth in December 2025. Official data confirmed that Remittances hit $3.6bn, marking a significant increase compared to last year. The State Bank of Pakistan (SBP) released the figures on Friday, highlighting a steady rise in foreign inflows.
According to SBP, workers sent $3.6 billion in December 2025. This reflected a 16.5% increase on a yearly basis. The figure also showed solid monthly growth compared to November. In November 2025, remittances stood at $3.2 billion. In December 2024, inflows were recorded at $3.1 billion.
The strong performance helped improve overall inflows for the fiscal year. SBP data showed cumulative remittances of $19.7 billion during July to December FY26. This is compared with $17.8 billion recorded in the same period of FY25. The increase highlighted improved confidence in formal banking channels.
Financial analysts noted that Remittances hit $3.6bn due to several positive factors. These included higher manpower exports in recent years. A reduced gap between official and informal exchange rates also supported inflows. The continuation of the remittance incentive scheme further encouraged overseas Pakistanis to send money through legal channels.
Topline Securities stated that the momentum was expected to continue. The firm maintained its full-year FY26 remittance target at $41 billion. This projection represented a 7.5% increase from the FY25 level of $38 billion. Analysts believe sustained overseas employment will support future inflows.
Saudi Arabia remained the largest source of remittances in December. Inflows from the Kingdom reached $813 million. The United Arab Emirates followed closely with $726 million. These two countries continued to dominate remittance corridors for Pakistan.
Data showed that the United Kingdom contributed $560 million during the month. The European Union added $499 million. Other Gulf Cooperation Council countries sent $333 million. The United States accounted for $302 million in remittances.
Within the UAE, Dubai led the inflows. Remittances from Dubai reached $565.7 million. Abu Dhabi followed with $130 million. Sharjah contributed $12.75 million, while other regions sent $17.50 million.
Economists noted that Remittances hit $3.6bn at a crucial time. Pakistan faces ongoing external account pressures. Strong inflows help stabilize foreign exchange reserves. They also support the local currency and ease the balance of payments situation.
Pakistan’s stock market also showed strong momentum during the same period. Read more in KSE-100 Index Crosses 181,000 Points in Historic PSX Rise to understand investor confidence trends.
The consistent rise in remittances reflects growing trust in Pakistan’s banking system. Authorities expect inflows to remain strong if current policies continue. Overseas Pakistanis remain a key pillar of economic stability.
