Overseas Pakistanis have set a new record by sending $24 billion in remittances during the first eight months of the current fiscal year, rejecting PTI’s call to halt money transfers.

This marks a significant 32% increase in remittances from July to February compared to the same period last year, reflecting growing confidence in the government’s economic policies.

According to data released by the State Bank of Pakistan (SBP), remittances surged to $3.1 billion in February alone, posting a 38% increase on a year-on-year basis and a 4% rise compared to January 2024.

Top contributors

Pakistani expatriates in Saudi Arabia remained the top contributors, sending $744.4 million in February. The United Arab Emirates followed with $650 million, while remittances from the United States and the United Kingdom stood at $310 million and $250 million, respectively.

Economic impact

Economic analysts predict that if this trend continues, the total remittances for the 2024-25 fiscal year could surpass $36 billion by June 2025.

Also Read: IMF-Pakistan policy talks begin as tough economic measures loom

Meanwhile, Pakistan and the International Monetary Fund (IMF) have commenced policy-level discussions on the next tranche of the $7 billion loan program, with the review set to continue until March 14.

According to officials from the Ministry of Finance, the IMF delegation will assess the country’s progress in implementing economic reforms under the program’s conditions.

The discussions will also include consultations on budget proposals for the upcoming fiscal year, with a particular focus on taxation and energy sector reforms.

Proposed taxation measures

Sources indicate that the IMF has put forth several taxation measures, including a Rs 2.80 per unit surcharge on electricity bills and the imposition of carbon tax on petrol and diesel.

Also Read: Pakistan’s economy shows promising signs of recovery

In an alternative proposal, the Fund has suggested increasing the petroleum levy from Rs 60 to Rs 70 per litre. Additionally, a carbon levy on coal-fired power plants and industrial boilers is under consideration.