In December 2024, Pakistan witnessed a historic surge in remittance inflows. Overseas Pakistanis sent home a staggering $3.08 billion, a 29.3 per cent increase compared to the $2.38 billion recorded in December 2023. This remarkable growth highlights the resilience of the Pakistani diaspora and serves as a resounding rejection of Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan’s call to boycott remittances amid ongoing political tensions.
The State Bank of Pakistan (SBP) reported that December 2024 remittances grew by 6 per cent month-on-month, rising from $2.92 billion in November 2024. This growth was driven by contributions from key regions, with Saudi Arabia leading the way at $770.6 million, followed by the United Arab Emirates ($631.5 million), the United Kingdom ($456.9 million), and the United States ($284.3 million). Notably, remittances from the UAE surged by 51 per cent year-on-year, while Saudi Arabia saw a 33 per cent increase.
The record inflows in December 2024 provided much-needed relief to the cash-strapped economy, narrowing the trade deficit and supporting the Pakistani rupee’s stability.
The first half of the fiscal year 2024-25 (July to December) also saw a 33 per cent increase in remittances, totalling $17.8 billion compared to $13.4 billion in the same period of the previous fiscal year. This growth reflects the success of government initiatives to formalise remittance channels and stabilise the economy.
The surge in remittances comes against the backdrop of a political standoff between the PTI and the government. In December 2024, Imran Khan, through his sister Aleema Khan, warned that he would urge overseas Pakistanis to halt remittances if the government failed to meet his demands, including the release of incarcerated PTI workers and the formation of judicial commissions to investigate alleged state brutalities. By January 2025, Khan reiterated this call, urging overseas Pakistanis to boycott remittances, claiming that sending money would “strengthen the very hands that are tightening the noose around your necks.”
Experts believe that overseas Pakistanis would continue to send money to their families, regardless of political appeals.
However, the data from December 2024 clearly shows that overseas Pakistanis ignored this appeal. Instead, they demonstrated a strong commitment to supporting their families and the national economy. Experts believe that overseas Pakistanis would continue to send money to their families, regardless of political appeals, highlighting the deep emotional and economic ties that bind the diaspora to their homeland.
Remittances play a critical role in Pakistan’s economy, contributing to foreign exchange reserves, stabilising the external account, and boosting household incomes. The record inflows in December 2024 provided much-needed relief to the cash-strapped economy, narrowing the trade deficit and supporting the Pakistani rupee’s stability.
Finance Minister Muhammad Aurangzeb and SBP Governor Jameel Ahmad have projected that remittances for FY25 could reach an unprecedented $35 billion, up from $30.25 billion in FY24. This optimistic outlook is supported by the government’s efforts to incentivise formal remittance channels and crack down on illegal money transfer systems like hawala/hundi.
The record increase in remittances in December 2024 shows the resilience and patriotism of overseas Pakistanis. It also serves as a clear rejection of PTI’s call to halt remittances, demonstrating that the diaspora prioritises the well-being of their families and the nation over political rhetoric. As Pakistan continues to navigate economic challenges, the support of its overseas community remains a cornerstone of its stability and growth.
