KARACHI: Amid a robust inflow of remittances, Pakistan met the $5 billion annual growth target in the first seven months of the current fiscal year.

The latest data issued by the State Bank of Pakistan (SBP) on Monday showed that the country received $20.8bn in remittances during the July-January FY25 compared to $15.8bn, showing the country received an additional $5bn with a growth of 31.7pc.

Finance Minister Mohammad Aurangzeb and SBP Governor Jameel Ahmed recently told the media that the country would get about $35bn in remittances in FY25 against the $30.25bn it received in the preceding year. However, the country achieved the projected growth target thanks to improved inflows during the first seven months.

Workers` remittances totalled $3bn in January, reflecting year-on-year growth of 25.2pc,` the central bank announced in its press release. Inflows during January were mainly sourced from Saudi Arabia ($728.3m), the United Arab Emirates ($621.7m), the United Kingdom ($443.6m) and the United States of America ($298.5m).

However, inflows from almost all important destinations increased during the July-January period, suggesting the government`s higher reliance on remittances than exports for meeting its foreign exchange needs.

The government recently announced a loan scheme of up to Rs1 million for those who successfully secure a job abroad. Individuals will utilise this government money for air tickets and other crucial expenses abroad.

The government is trying to export labourers, but talented Pakistanis, particularly those associated with the IT sector, are also leaving the country.

Sources in the IT sector reveal that an IT company is rebasing in Vietnam. Nearly 4,000 Pakistani businesses have chosen Dubai in the first half of 2024.

`What is more important is that the IT-related people are interested in permanently settling abroad, said an IT expert.

According to the SBP data, the remittances from Saudi Arabia grew 34.1pc to $5.151bn during 7MFY25.

The inflows from the UAE surged 53.7pc to $4.205bn compared to $2.736bn in the same period of last year.

The 3rd largest amount of remittances was received from the UK as it increased by 30.4pc to $3.063bn.

Remittances from the US rose 12.5pc to $2.092bn, EU countries 25.4pc to $2.488bn and GCC 20pc to $2.09bn during the July-January period.