Saudi Arabia Tops Remittance Inflows in December as Workers’ Transfers Surge Nearly Seventeen Percent
Remittances to Pakistan climb with Saudi Arabia leading inflows, supporting foreign exchange reserves and economic stability
Workers’ remittances to Pakistan rose markedly in December 2025, with inflows recording a significant year-on-year increase of sixteen point five percent, according to the latest data released by the State Bank of Pakistan.
The strong influx of hard currency provided valuable support to the country’s foreign exchange reserves and balance of payments at a time when external financing remains a critical economic fulcrum.
Saudi Arabia was the single largest source of remittance inflows during the month, with inflows of eight hundred thirteen point one million dollars, followed by the United Arab Emirates, the United Kingdom and the United States.
Saudi Arabia’s leading position reflects the deep economic ties between the Kingdom and its expatriate workforce, as well as the continued dependence of millions of Pakistani households on remittances from Gulf countries.
Remittances through formal banking channels reached approximately three point six billion dollars for December, underpinned by robust labour migration and strengthened legal remittance frameworks that encourage transfers through regulated institutions.
The data also showed a strong domestic growth pattern: remittances posted a solid cumulative increase of ten point six percent in the first half of the fiscal year 2025-26 compared with the corresponding period a year earlier, highlighting sustained momentum in cross-border money flows.
Pakistan’s reliance on remittances as a key source of foreign exchange means these inflows help finance imports, support household consumption and reduce dependence on external borrowing.
Economists and policymakers have welcomed the robust remittance performance as a stabilising force for the country’s currency and external accounts, especially against global economic uncertainties and ongoing structural adjustments under international financing arrangements.
Millions of Pakistanis work abroad — particularly in Saudi Arabia and the UAE — and these transfers remain a vital economic lifeline for their families and for the wider national economy.
The strong influx of hard currency provided valuable support to the country’s foreign exchange reserves and balance of payments at a time when external financing remains a critical economic fulcrum.
Saudi Arabia was the single largest source of remittance inflows during the month, with inflows of eight hundred thirteen point one million dollars, followed by the United Arab Emirates, the United Kingdom and the United States.
Saudi Arabia’s leading position reflects the deep economic ties between the Kingdom and its expatriate workforce, as well as the continued dependence of millions of Pakistani households on remittances from Gulf countries.
Remittances through formal banking channels reached approximately three point six billion dollars for December, underpinned by robust labour migration and strengthened legal remittance frameworks that encourage transfers through regulated institutions.
The data also showed a strong domestic growth pattern: remittances posted a solid cumulative increase of ten point six percent in the first half of the fiscal year 2025-26 compared with the corresponding period a year earlier, highlighting sustained momentum in cross-border money flows.
Pakistan’s reliance on remittances as a key source of foreign exchange means these inflows help finance imports, support household consumption and reduce dependence on external borrowing.
Economists and policymakers have welcomed the robust remittance performance as a stabilising force for the country’s currency and external accounts, especially against global economic uncertainties and ongoing structural adjustments under international financing arrangements.
Millions of Pakistanis work abroad — particularly in Saudi Arabia and the UAE — and these transfers remain a vital economic lifeline for their families and for the wider national economy.
