Published in The News on July 09, 2025
KARACHI: Workers’ remittances to Pakistan surged to an all-time high of $38.3 billion in fiscal year 2025, showing a robust 26.6% increase from $30.3 billion recorded in FY24, according to data released by the State Bank of Pakistan (SBP) on Wednesday.
In June 2025, monthly inflows reached $3.4 billion, reflecting a 7.9% rise compared to the same month last year.
Remittances have been on the rise, peaking at a record-breaking $4.1 billion in March, the highest single-month inflow ever recorded.
Analysts attributed this sharp rise to a combination of factors including economic recovery, stability in the exchange rate, and incentives introduced by both the government and the central bank.
“The country received a record $38.3 billion in remittances in FY25 — up 27%,” said Mohammed Sohail, CEO of Topline Securities.
According to the SBP, Saudi Arabia remained the largest source of remittances in June 2025, contributing $823.2 million, followed by the United Arab Emirates with $717.2 million, the United Kingdom with $537.6 million, and the United States with $281.2 million.
Analysts attribute the growth to multiple factors: ongoing economic recovery supported by the International Monetary Fund’s loan programme, exchange rate stability, targeted remittance incentives, and improvements in Pakistan’s banking and financial infrastructure, which have encouraged greater use of formal channels by overseas Pakistanis.
Earlier this year, SBP Governor Jameel Ahmad had projected annual remittances would approach $38 billion in FY25, up from $30.3 billion in FY24. The government has now set a remittance target of $39.4 billion for FY26.
In addition, the government has projected a current account deficit of $2.1 billion, or 0.5% of GDP, for FY26 — revised from an expected $1.5 billion surplus, or 0.4% of GDP, for FY25.