Muhammad Riaz tried to travel abroad. PHOTO: FILE
ISLAMABAD:
The finance ministry said on Tuesday that over 762,000 Pakistanis left the country over the past year, becoming part of the pool that helps the nation stay afloat economically amid a sharp reduction in foreign direct investment and exports.
In the calendar year 2025, the Bureau of Emigration & Overseas Employment recorded 762,499 workers leaving Pakistan, according to the monthly outlook report of the Ministry of Finance. There was an increase of over 5% or almost 37,000 more souls who left the motherland in search of better job opportunities.
The Ministry of Finance said that in December 2025 alone, the Bureau of Emigration & Overseas Employment recorded 76,207 workers leaving Pakistan, marking an 18.7% year-on-year increase.
Out of the total, 530,000 people went to Saudi Arabia in search of a good future. From unskilled to highly skilled and highly skilled people are leaving Pakistan amid a prolonged period of low economic growth and increased period of political instability.
The money sent by overseas Pakistanis is now the single largest source of non-debt, creating foreign inflows that keep the country afloat. During the first half of this fiscal year, Pakistani workers sent $19.7 billion in remittances, an 11% increase.
The government gets about $40 billion annually from these workers with no support for them. Compared to this, the entire state machinery is focused on increasing exports and foreign direct investment, but is failing.
The foreign remittances were 23 times more than the $808 million FDI that Pakistan received during the first half of this fiscal year. It was also $4.2 billion higher than exports worth $15.5 billion during this period.
Despite efforts on several fronts, foreign direct investment fell by nearly 44% during the first half of this financial year. The finance ministry said foreign direct investment fell from $1.4 billion to just $808 million during the July-December period of this fiscal year.
Pakistan’s inconsistent economic policies, high taxes and energy prices, and unrealistically high interest rates keep the foreign investors away. Authorities are still struggling to resolve inter-provincial issues that also hamper foreign investment.
The Treasury report said the current account is expected to remain in deficit in January, but this would be supported by higher foreign remittances.
The “robust cash inflow and stable performance in information technology and services exports are likely to mitigate external pressure”, the ministry said. The improved fiscal governance is also expected to continue to support macroeconomic stability, the ministry said.
The current account showed a deficit of $1.2 billion in the July-December period of this financial year, compared to a surplus of $960 million recorded last year.
But the finance ministry said that despite these challenges, the government has achieved a fiscal surplus in the July-Nov period due to revenue growth and a significant reduction in supplementary payments. Federal gross receipts registered a growth of 8% during the first five months of this fiscal year, contributed by growth in both the FBR’s tax and non-tax receipts.
The government achieved a consolidated fiscal surplus of 0.8% of GDP or Rs 982 billion. during the first five months of this financial year. Similarly, a primary surplus of 2.8% of GDP or Rs 3.7 trillion was recorded.
The central bank said on Monday that it would be challenging to meet the annual primary budget surplus target set by the International Monetary Fund. The FBR charges are far behind the target.
Against the seven-month downwardly revised target of Rs7.5 trillion, the FBR collected Rs6.8 trillion till Tuesday evening. During this week, it needs another Rs 715 billion. just to meet the downwardly revised target.
Inflation
The Finance Ministry said inflation would remain stable this month within the existing range of 6%. However, despite a stable outlook, the central bank did not cut interest rates this week, helping to fatten the already fat commercial banks.
Last month, inflation rose to 5.6 per cent.
The ministry said Pakistan’s economy is well positioned to sustain its growth momentum in the current fiscal year, supported by the encouraging performance of large-scale manufacturing and other high-frequency indicators. This positive trajectory reflects the impact of prudent policies, ongoing structural reforms and easing of monetary conditions due to easing inflationary pressures, it added.
Pakistan’s economy has ended the first half of this financial year with continued macroeconomic stability, reflected in contained inflation, recovery in LSM growth and strengthened foreign reserves with stable exchange rate.
The sustained growth momentum has been complemented by fiscal discipline that has resulted in fiscal and primary surpluses. LSM has gained momentum and signals improved growth prospects for the remaining period of the financial year. Transfers remained robust and supported the external account.
The ministry said LSM registered a growth of 6% during the first five months of this fiscal year, reaching the highest level since FY2016. In November 2025, LSM grew by 10.4% on a year-on-year basis as automobiles, coke and petroleum products, and apparel continued to be the major contributors to overall growth.
