Pakistan’s economy received a substantial lifeline in FY25 as workers’ remittances soared to a record $38.3 billion, reflecting a robust 27% increase from the $30.3 billion reported in FY24. According to fresh data released by the State Bank of Pakistan (SBP) on Wednesday, this translates into a significant year-on-year rise of $8 billion, underlining the unwavering financial backing of overseas Pakistanis during a period marked by economic uncertainty and fiscal pressures.
The latest figures not only highlight the critical role remittances play in shoring up Pakistan’s foreign exchange reserves but also signal continued trust by the Pakistani diaspora in formal banking channels despite global economic headwinds. These inflows have provided much-needed relief for the balance of payments and offered stability to the local currency at a time when external financing remains tight.
Breaking down the data for June 2025, remittances amounted to $3.406 billion, registering an 8% increase from the $3.158 billion received in June 2024. However, they dipped by 8% compared to May 2025’s figure of $3.686 billion, reflecting typical monthly volatility.
Country-specific data for June showed mixed trends. Inflows from the United States totaled $281 million, which was 13% lower year-on-year and 11% below the previous month. Remittances from the United Kingdom stood at $538 million, rising 10% compared to June last year but slipping 9% from May 2025. Saudi Arabia remained Pakistan’s largest source, sending $823 million in June, modestly up by 2% from last year though down 10% month-on-month. Meanwhile, the UAE contributed $717 million, reflecting a 10% year-on-year climb but a 5% decline from May.
Other GCC countries sent $303 million, largely flat with a 1% annual rise but down 16% from May. Contributions from the European Union continued to impress, reaching $442 million, up 34% year-on-year and 5% month-on-month. Other countries combined sent $301 million, marking an 18% increase on an annual basis despite a 9% decrease from the prior month.
For the full fiscal year, Saudi Arabia topped the list with $9.345 billion in remittances, a 26% increase from $7.424 billion last year. The UAE followed closely with $7.869 billion, surging 41% from $5.535 billion. The UK’s contribution rose 31% to $5.905 billion, while inflows from the US edged up 5% to $3.720 billion. Other GCC nations collectively sent $3.712 billion, reflecting a 17% jump, while the EU’s total climbed to $4.543 billion, up 29%. Remittances from other regions stood at $3.244 billion, showing a 28% rise over the previous year.
Commenting on these record numbers, Muhammad Sohail, CEO of Topline Securities, remarked that Pakistan received critical support through these inflows precisely when needed most. “In a year marked by economic challenges, overseas workers stepped up. Pakistan received a record USD 38.3 billion in FY25 — up 27%. Bangladesh also witnessed record inflows of USD 30 billion — up 26%,” he noted, pointing to broader regional resilience.
As Pakistan navigates structural economic hurdles and seeks to deepen financial reforms, these record remittances underscore the indispensable role of its global diaspora in sustaining growth and bridging fiscal gaps, especially through formal and regulated channels that strengthen the country’s long-term financial health.