Islamabad: Pakistan received a strong boost to its economy as workers’ remittances reached $3.46 billion in January, according to data released by the State Bank of Pakistan (SBP).
The latest figures show that Dubai (UAE) remained the largest contributor from the United Arab Emirates, reinforcing its position as a key hub for overseas Pakistanis.
Remittances to Pakistan remain one of the most important sources of foreign exchange.
At a time when the country closely monitors dollar inflows, exchange rate stability, and foreign reserves, the steady increase in overseas Pakistanis sending money home provides much-needed economic support.
The United Arab Emirates (UAE) emerged as the second-largest remittance source after Saudi Arabia (KSA). In January alone, total remittances from the UAE stood at $694 million.
A major portion of this amount came from Dubai (UAE), which sent over $540 million to Pakistan during the month.
According to SBP data, Dubai (UAE) accounted for nearly three-quarters of the total remittances received from the UAE.
The city is home to a large Pakistani expatriate community working in construction, transport, retail, hospitality, banking, and other service sectors. The strength of Dubai’s economy directly influences remittance flows to Pakistan.
Abu Dhabi (UAE) also made a significant contribution, sending $126.1 million to Pakistan in January. The capital city’s oil-based economy and expanding corporate sector continue to provide employment opportunities for skilled and semi-skilled Pakistani workers.
Sharjah (UAE), though contributing a smaller share, sent $9.8 million in remittances. Despite its comparatively smaller workforce, Sharjah remains part of the broader UAE support system for Pakistan’s economy.
Overall, remittances of $3.46 billion in January reflect the continued trust of overseas Pakistanis in supporting their families and homeland.
These inflows help strengthen Pakistan’s foreign exchange reserves, stabilize the Pakistani rupee, and ease pressure on the current account deficit.
Saudi Arabia (KSA) retained its position as the top remittance-sending country, highlighting the strong presence of Pakistani workers across Gulf economies.
However, the UAE’s role, particularly Dubai (UAE), remains central in monthly remittance growth trends.
Economists believe that improved digital banking systems, formal money transfer channels, and government initiatives encouraging legal remittances have contributed to higher official inflows.
Many overseas Pakistanis now prefer secure banking channels rather than informal methods, thereby improving transparency in remittance reporting.
As global economic conditions continue to evolve, remittance inflows remain a critical pillar of Pakistan’s financial stability.
If current trends continue, strong remittances from Dubai (UAE), Abu Dhabi (UAE), and other Gulf cities could help maintain stability in Pakistan’s external account position in the coming months. The January remittance data once again highlights the vital role of overseas Pakistanis. Their financial contributions not only support millions of households but also strengthen the country’s overall economic resilience.
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