Pakistan Achieves Record-Breaking Home Remittances in FY25

Pakistan has achieved a momentous economic milestone, securing an all-time high in home remittance inflows, exceeding $38 billion during the fiscal year 2025. This remarkable increase is attributed to the successful implementation of strong policy measures and continuous initiatives by the federal government, along with the State Bank of Pakistan (SBP), to effectively channel remittances through formal methods.

The State Bank of Pakistan (SBP) revealed a substantial 27 percent increase in remittances from workers abroad during the last fiscal year. The Pakistani diaspora remitted a record $38.3 billion between July 2024 and June 2025, compared to $30.25 billion during the same period in FY24, marking an impressive $8 billion augmentation.

These inflows from overseas workers align with the forecast made by SBP Governor Jameel Ahmad, who had adjusted the remittance target upwards from $36 billion to $38 billion for the complete fiscal year 2025.

Khurram Schehzad, an advisor to the finance minister, has acknowledged that the unprecedented home remittances in FY25 reflect the growing assurance of overseas Pakistanis in the government’s financial strategies and policy structure.

He stated that these inflows enabled Pakistan to surpass its ambitious remittance goal of $38 billion while reinforcing its external account position. He added, “These inflows have been instrumental in boosting domestic liquidity, improving the nation’s external buffers, and greatly underpinning the foreign exchange reserves.”

Khurram emphasized that the significant surge in remittances illustrates the increasing confidence of overseas Pakistanis in the economy and the policy actions implemented by the existing government.

According to the State Bank, Saudi Arabia stands out as the foremost contributor to remittances, accounting for 24 percent of total inflows during the last fiscal year. Remittance inflows from Saudi Arabia grew by 26 percent, reaching $9.345 billion between July 2024 and June 2025, up from $7.424 billion during the equivalent period in FY24.

The UAE secured the second position with inflows of $7.9 billion, displaying a 42 percent rise from $5.5 billion in the prior year.

The UK and the USA saw increases of 31 percent and 5 percent, respectively, with inflows reaching $6 billion and $3.7 billion in the last fiscal year.

On a month-over-month basis, Pakistan received home remittances amounting to $3.406 billion in June 2025, compared to $3.15 billion in June 2024, showing an upswing of $248 million. Nevertheless, remittances in June 2025 were slightly less than in May 2025, when the country received $3.7 billion in inflows.

Notably, Pakistan also observed record monthly remittances of over $4 billion in March 2025, aided by inflows related to Eid.

Mohammad Sohail, CEO of Topline Securities, mentioned that Pakistan received record remittance inflows at a crucial and much-needed juncture. He commented, “In a year distinguished by economic difficulties and unpredictability, overseas Pakistanis demonstrated exceptional backing for the nation.” He also noted that Bangladesh experienced record inflows of $30 billion, a 26 percent increase. He further added, “This represents a substantial source of aid for both economies, assisting in bridging external deficits and augmenting household incomes.”