Pakistan’s workers’ remittances recorded an all-time high of record remittances in Pakistan, hitting $38.3 billion in fiscal year 2025, the State Bank of Pakistan (SBP) said on Monday.
This represents a big 26.6% growth from $30.3 billion received in FY24, reflecting increased confidence of overseas Pakistanis and increased dependency on the formal banking system.
June 2025 itself witnessed $3.4 billion inflows, indicating a whopping 7.9% increase from the same month last year. March 2025 witnessed a record single-month remittances of $4.1 billion, creating a new benchmark of record remittances for Pakistan, as indicated by Topline Securities.
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This extraordinary growth is spurred by economic recovery, exchange rate stability, and pre-emptive government incentives,” said Topline Securities CEO Mohammed Sohail. “FY25 has officially become the record highest ever year for annual remittances.”
Saudi Arabia dominated as the largest contributor, remitting $823.2 million in June, followed by the United Arab Emirates ($717.2 million), the United Kingdom ($537.6 million), and the United States ($281.2 million).
Analysts identify several reasons for this boom: Pakistan’s economic stabilisation via the IMF program, enhanced financial infrastructure, and calibrated incentives that encouraged the utilisation of the legal banking system. Such measures have bolstered confidence among overseas Pakistanis in the financial system at home.
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Earlier this year, SBP Governor Jameel Ahmad had projected that remittances could reach $38 billion in FY25 — a prediction now fully met. Ahead, the government has targeted an even higher goal of $39.4 billion in remittances for FY26.
But on the trade side, Pakistan updated its external sector outlook, expecting now a current account shortfall of $2.1 billion or 0.5% of GDP for FY26, reversing from the earlier predicted $1.5 billion surplus for FY25, showing the continued struggle of growth and external payments balancing.
