KARACHI: Pakistan received a record $38.3 billion in workers’ remittances during the last fiscal year, reporting an increase of about $8 billion over a 12-month period that exceeds the country’s ongoing International Monetary Fund (IMF) loan program, according to official data and analysts on Tuesday.

The remittance surge from $30.25 billion in FY24 helped shore up the country’s foreign reserves, prompting experts to says it is likely to push the current account into surplus for the first time in over a decade.

The IMF Executive Board approved a $7 billion Extended Fund Facility (EFF) for Pakistan in April 2024, spanning 37 months, after acknowledging Islamabad’s structural reforms and stabilizing macroeconomic indicators.

The government described the bailout as critical to reviving an economy that had faced a prolonged financial crisis and balance-of-payments stress over the past two years.

“Remittances have actually rescued Pakistan beyond expectations. It was a significant jump of over $8 billion in annual remittances, which is more than the whole IMF program funding,” Shankar Talreja, head of research at Topline Securities Limited, told Arab News after the central bank released remittance figures for the last fiscal year.

“Thanks to the remittances, we will be able to record a current account surplus for the first time after 13 years of deficit and for only the second time in the last two decades,” he added.

According to the State Bank of Pakistan, Saudi Arabia led all contributors during FY25, with remittances totaling $9.34 billion, followed by the United Arab Emirates at $7.83 billion, the United Kingdom at $5.99 billion and the United States at $3.72 billion.

Remittances from Gulf Cooperation Council (GCC) countries excluding Saudi Arabia and the UAE totaled $3.71 billion, while EU countries contributed $3.53 billion.

Commenting on the data, Mohammed Sohail, CEO of Topline Securities, wrote on social media: “Record Remittances When Most Needed. In a year marked by economic challenges, overseas workers stepped up: Pakistan received a record USD 38.3 billion in remittances in FY25 — up 27 percent.”

The fiscal year average stood at approximately $3.19 billion per month, well above the average of $2.52 billion in FY24.

ISLAMABAD: Russia and Pakistan discussed plans to modernize a major steel complex and expand industrial cooperation during a high-level meeting on the sidelines of the INNOPROM Annual Industrial Forum in Yekaterinburg, state media reported on Tuesday.

The meeting between Haroon Akhtar Khan, Special Assistant to the Pakistani Prime Minister on Industries and Production, and Russian Trade and Industry Minister Anton Alikhanov focused on reviving Pakistan’s dormant steel industry and enhancing bilateral trade.

INNOPROM is Russia’s largest annual industrial trade fair, bringing together government delegations, business leaders and technology firms from over 30 countries to explore partnerships in manufacturing, engineering and high-tech industries.

“Both sides reviewed technical aspects of modernizing the Pakistan Steel Mills to establish a cutting-edge metallurgical facility,” Pakistan Television (PTV) reported. “The discussions also explored ways to enhance trade ties and promote industrial collaboration between the two countries.”

Earlier this month, Russian Consul-General Andrey B. Fedorov told Arab News Moscow expected to finalize an agreement with Islamabad this summer to construct a new steel mill in Karachi.

The original Pakistan Steel Mills, once the country’s flagship industrial complex, was built in the 1970s with Soviet assistance. While it symbolized national self-sufficiency, the mill has been non-operational since 2015 due to years of financial mismanagement, political interference and mounting losses.

Technical experts from Russia have already inspected the proposed site for the new facility, and another delegation is expected soon to draft a detailed roadmap.

Russia has a long history of industrial cooperation with Pakistan, having previously built key infrastructure projects such as the Guddu Power Station in Sindh in the 1980s, one of the country’s major electricity producers.

Moscow and Islamabad have expanded cooperation in recent years despite global tensions over the war in Ukraine.