Pakistan’s remittance inflows surged to a record $38.3 billion in fiscal year 2025, reflecting a 27% year-on-year increase from the $30.3 billion received in FY24, according to the State Bank of Pakistan (SBP). The month of June 2025 alone saw remittances of $3.4 billion, up 8% compared to the same period last year. Analysts highlight that this growth underscores the resilience of overseas Pakistanis and the effectiveness of government policies aimed at boosting formal remittance channels.
Record-Breaking Monthly Inflows
Remittances peaked in March 2025 at $4.1 billion, the highest single-month inflow in Pakistan’s history. Topline Securities noted that FY25 marks the country’s highest-ever annual remittance receipts, attributing the surge to economic recovery, exchange rate stability, and targeted incentives by the SBP and government.
Key Contributors and Future Targets
Saudi Arabia remained the largest source of remittances in June, contributing $823.2 million, followed by the UAE ($717.2 million), the UK ($537.6 million), and the US ($281.2 million). The SBP Governor had earlier projected remittances nearing $38 billion for FY25, but the actual figures surpassed expectations. The government has now set an even higher target of $39.4 billion for FY26.
Economic Outlook and Challenges
While remittances have strengthened Pakistan’s external accounts, the government has revised its current account projections. After expecting a $1.5 billion surplus (0.4% of GDP) for FY25, officials now forecast a $2.1 billion deficit (0.5% of GDP) for FY26. Analysts suggest that continued policy stability and further financial sector reforms will be crucial to sustaining remittance growth and economic stability in the coming year.