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ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday said Pakistan and Kuwait share strong brotherly relations, which were set to further strengthen through bilateral economic, investment and trade cooperation.

He made the remarks while addressing a ceremony in Islamabad in connection with the issuance of a digital licence to Raqami Islamic Digital Bank.

The prime minister congratulated Raqami Islamic Digital Bank on becoming the third licenced digital retail bank in Pakistan.

He expressed hope that the bank would not only be Sharia-compliant but would also offer features that would significantly support and promote the growth of banking in the country.

“This development will go a long way in further enhancing bilateral economic relations between Pakistan and Kuwait,” the prime minister said.

He also expressed gratitude to the Kuwaiti leadership for their support to Pakistan at various times.

Raqami Islamic Digital Bank Limited was awarded a restricted banking license by the State Bank of Pakistan (SBP) in May 2025, under the Licensing and Regulatory Framework for Digital Banks to commence pilot operations as a digital retail bank.

Raqami is backed by Pakistan Kuwait Investment Company (Private) Limited, a joint venture between Pakistan and Kuwait governments and Enertech Holding Company KSC, a subsidiary of the sovereign wealth fund of Kuwait, the Kuwait Investment Authority.

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The State Bank of Pakistan (SBP) on Tuesday said overseas workers’ remittances were recorded at $3.5bn in January, increasing by 11.3 per cent during Jul-Jan FY26.

“Cumulatively, with an inflow of US$ 23.2 billion, workers’ remittances increased by 11.3 percent during Jul-Jan FY26 compared to US$ 20.9 billion received during the same period last year,” said SBP.

“In terms of growth, remittances increased by 15.4pc on a year-to-year basis,” the central bank said.

It elaborated that the remittances in January were “mainly sourced from Saudi Arabia ($739.6 million), United Arab Emirates ($694.2m), United Kingdom ($572.1m) and United States of America ($294.7m).

Remittances in December rose to the highest level of the current fiscal year (FY26), reaching $3.6 billion, largely driven by continued incentives for sending money through formal channels and relative stability in the exchange rate.

Currency experts believe remittance growth this year is weaker than in FY25. They cite concerns over a “managed” exchange rate, suggesting some inflows may be diverted away from official banking channels.

Pakistan is among the top countries receiving large foreign exchange inflows through remittances. While a growing number of jobseekers leaving the country is termed by some economists as brain drain, the government considers it beneficial for the external balance.

Last year’s record inflows of $38bn helped partially repay external debt, boost State Bank reserves, stabilise the exch­ange rate and post a current account surplus after more than a decade.

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