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Pak Remittances in May 2025 Surge to $3.7 Billion
- Pak remittances in May 2025 reached $3.7 billion, showing a 14% year-on-year increase.
- This positive trend has been consistent throughout FY2024-25, supporting foreign exchange reserves and stabilizing the external sector.
- Cumulatively, remittances from July to May FY2025 totaled $34.9 billion, marking a 28.8% rise over the previous year.
- Top remittance sources include Saudi Arabia, the UAE, the UK, and the US, with notable increases from the UAE and EU countries.
- Non-traditional markets like South Africa, Ireland, and Malaysia are showing significant year-on-year growth in remittances.
- Monthly remittance flows peaked in March 2025 at $4.05 billion, with an average monthly remittance of $2.52 billion for the fiscal year.
- Factors contributing to this growth include strong economic conditions in host countries and improved digital remittance platforms.
- Concerns persist over the sustainability of growth due to heavy reliance on traditional markets and high remittance costs.
- Notable challenges include limited reporting on remittance purposes, exchange rate disparities, and structural vulnerabilities.
- Remittances from the US dropped 12.4% in May, potentially influenced by stricter regulations.
- Analysts recommend diversifying workforce destinations, reducing remittance costs through fintech, and enhancing data transparency.
- Reforms are crucial for remittances to continue as a stable contributor to Pakistan's economy, currently constituting 8-10% of GDP.
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