Muhammad Riaz was trying to travel abroad. PHOTO: FILE
ISLAMABAD:
The Finance Ministry said on Tuesday that more than 762,000 Pakistanis have left the country over the past year, becoming part of the group that is helping the country stay economically afloat, amid a sharp reduction in foreign direct investment and exports.
In the calendar year 2025, the Bureau of Emigration and Overseas Employment recorded 762,499 workers who left Pakistan, according to the monthly outlook report of the Ministry of Finance. There was an increase of more than 5%, or almost 37,000 additional souls who left the homeland in search of better job opportunities.
The Ministry of Finance said that in December 2025 alone, the Bureau of Emigration and Overseas Employment recorded 76,207 workers who left Pakistan, an increase of 18.7 percent on an annual basis.
Of this total, 530,000 people went to Saudi Arabia in search of a better future. Unskilled to highly skilled and highly skilled people are leaving Pakistan amid a prolonged period of low economic growth and a period of increased political instability.
Money sent by overseas Pakistanis now constitutes the largest source of non-debt-creating foreign inflows that keep the country afloat. In the first half of this financial year, Pakistani workers sent remittances of $19.7 billion, an increase of 11 percent.
The government receives about $40 billion a year from these workers, without any assistance. In comparison, the entire state apparatus focuses on increasing exports and foreign direct investment, but fails.
Foreign remittances were 23 times more than the $808 million foreign direct investment received by Pakistan in the first half of this fiscal year. It was also $4.2 billion more than the $15.5 billion in exports during that period.
Despite efforts on several fronts, foreign direct investment declined by almost 44% in the first half of this fiscal year. The Finance Ministry said foreign direct investment fell from $1.4 billion to just $808 million in the July-December period of this financial year.
Pakistan’s inconsistent economic policies, high taxes, energy prices and unrealistic interest rates keep foreign investors away. Authorities are still struggling to resolve interprovincial issues that are also holding back foreign investment.
The Finance Ministry report said the current account was expected to remain in deficit in January, but that this would be supported by an increase in foreign remittances.
“Significant remittances and steady performance of information technology and services exports are likely to cushion external pressures,” the ministry said. Improved fiscal management should also continue to support macroeconomic stability, the ministry said.
The current account recorded a deficit of $1.2 billion in the July-December period of this fiscal year, compared to a surplus of $960 million recorded last year.
But the Finance Ministry said that despite these challenges, the government achieved a budget surplus between July and November thanks to revenue growth and a considerable reduction in mark-up payments. Gross federal revenue recorded a growth of 8% in the first five months of this fiscal year, driven by growth in tax and non-tax revenue from the FBR.
The government achieved a consolidated budget surplus of 0.8% of GDP or Rs982 billion in the first five months of this financial year. Likewise, a primary surplus of 2.8% of GDP or Rs3.7 trillion was recorded.
The central bank said on Monday it would be difficult to meet the annual primary budget surplus target set by the International Monetary Fund. FBR taxes are way behind the target.
Against the downwardly revised seven-month target of Rs 7.5 trillion, the FBR has pooled Rs 6.8 trillion till Tuesday evening. During this week, it will need an additional Rs715 billion just to meet the downwardly revised target.
Inflation
The Finance Ministry said inflation would remain stable this month at the current range of 6%. However, despite a stable outlook, the central bank did not cut interest rates this week, helping to fatten already fattened commercial banks.
Last month, inflation recorded 5.6%.
The ministry said Pakistan’s economy is well positioned to maintain 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 the easing of monetary conditions due to the easing of inflationary pressures, the press release added.
Pakistan’s economy ended the first half of this fiscal year with continued macroeconomic stability, reflected by subdued inflation, rebound in LSM growth and strengthened foreign exchange reserves with a stable exchange rate.
The sustained growth dynamic was complemented by fiscal discipline that resulted in fiscal and primary surpluses. LSM gained momentum, signaling better growth prospects for the remainder of the fiscal year. Remittances remained robust, supporting the external account.
The ministry said the LSM recorded a growth of 6% in the first five months of this fiscal year, reaching its highest level since FY 2016. In November 2025, the LSM grew by 10.4% year-on-year, with automobile, petroleum and coke products as well as apparel remaining the major contributors to the overall growth.
