ISLAMABAD, Jan. 12 -- Remittances from overseas Pakistanis reached a record $38.3 billion in FY25, rising more than 26 percent from the previous year, according to the State Bank of Pakistan. While these inflows have bolstered foreign exchange reserves and household consumption, experts warn that excessive dependence on remittances poses long-term economic and social risks.

Read More: Remittances surge to $3.4bn in october, boosting Pakistan's economy

Remittances now surpass merchandise exports, which grew modestly to around $32.3 billion in FY25, highlighting a structural imbalance in Pakistan's growth model. Economists note that these inflows primarily support consumption rather than investment, reducing incentives for industrial deve...