Pakistan Sees 26.6% Jump in Remittances to $38.3 Billion, Up 27%

KARACHI: Workers’ remittances to Pakistan surged to an all-time high of $38.3 billion in fiscal year 2025 (FY25), marking a 26.6% year-on-year increase from $30.3 billion recorded in FY24, the State Bank of Pakistan (SBP) announced on Monday.

In June 2025 alone, remittances amounted to $3.4 billion, reflecting a 7.9% increase compared to the same month last year. According to Topline Securities, this represents an 8% year-on-year rise for June 2025. The firm added that FY25 has seen the highest annual remittance inflow in the country’s history.

The record-setting fiscal year also included the highest-ever single-month inflow of $4.1 billion in March 2025.

Analysts attribute the sharp rise in remittances to several key factors, including economic recovery, exchange rate stability, and various incentives introduced by the government and the central bank. Improvements in banking and financial infrastructure have also encouraged greater use of formal channels by overseas Pakistanis.

“The country received a record $38.3 billion in remittances in FY25 — up 27%,” said Mohammed Sohail, CEO of Topline Securities.

Saudi Arabia remained the leading source of remittances in June 2025, sending $823.2 million, followed by the United Arab Emirates ($717.2 million), the United Kingdom ($537.6 million), and the United States ($281.2 million), according to SBP data.

Earlier this year, SBP Governor Jameel Ahmad projected that annual remittances could reach around $38 billion in FY25, a target that has now been achieved. Looking ahead, the government has set an even higher remittance target of $39.4 billion for FY26.

Meanwhile, the government has revised its current account forecast for FY26, projecting a deficit of $2.1 billion (0.5% of GDP), compared to an expected surplus of $1.5 billion (0.4% of GDP) for FY25.

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