On Monday, the State Bank of Pakistan (SBP) announced that workers’ remittances to Pakistan reached an unprecedented $38.3 billion in fiscal year 2025 (FY25). This figure represents a substantial 26.6% year-on-year increase from the $30.3 billion recorded in FY24. In June 2025 alone, remittances totaled $3.4 billion, marking a 7.9% rise compared to the same month last year.
According to Topline Securities, “Pakistan’s remittances came at US$3.4bn in Jun 2025, up 8% year-on-year. This takes FY25 remittances to $38.3bn, up 27% YoY. FY25 marks the highest ever annual remittances received by Pakistan.”
Remittances have been consistently trending upwards, culminating in a record-breaking $4.1 billion in March, which stands as the highest single-month inflow ever recorded. Analysts have attributed this sharp increase to a confluence of factors, including economic recovery, stability in the exchange rate, and various incentives introduced by both the government and the central bank. “The country received a record $38.3 billion in remittances in FY25 — up 27%,” stated Mohammed Sohail, CEO of Topline Securities.
Key Sources and Contributing Factors
The SBP reported that 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 point to several factors underpinning this growth: the ongoing economic recovery, which is supported by the International Monetary Fund’s loan program; continued exchange rate stability; targeted remittance incentives; and notable improvements in Pakistan’s banking and financial infrastructure, which have collectively encouraged overseas Pakistanis to increasingly utilize formal remittance channels.
Future Projections and Current Account Outlook
Earlier this year, SBP Governor Jameel Ahmad had forecasted that annual remittances would approach $38 billion in FY25, a significant jump from $30.3 billion in FY24. The government has now set an even more ambitious remittance target of $39.4 billion for FY26.
Furthermore, the government has projected a current account deficit of $2.1 billion, or 0.5% of GDP, for FY26. This is a revision from an earlier expectation of a $1.5 billion surplus, or 0.4% of GDP, for FY25.
