By Staff Reporter
KARACHI: Pakistan’s inflow of overseas workers’ remittances surged to a record $38.3 billion in fiscal year 2024-25, a 27% jump from the previous year, offering a lifeline to the nation’s economy as it navigates persistent challenges, data from the State Bank of Pakistan (SBP) showed on Wednesday.
The figure, the highest in the country’s history, eclipses the $30.25 billion recorded in the prior fiscal year and underscores the growing role of expatriate Pakistanis in shoring up the nation’s finances. Remittances are a critical pillar for Pakistan, supporting its external account, fueling economic activity, and bolstering household incomes in a country where many depend on such transfers.
The record inflows signal a deepening reliance on Pakistan’s diaspora at a time when the nation seeks to stabilise its finances and attract investment.
“This is the highest-ever remittances received during a fiscal year,” Samiullah Tariq, Head of Research at Pak Kuwait Investment Company, said. “A strict regulatory enforcement, a crackdown on money laundering, and the continued migration of Pakistanis abroad are trio of drivers behind the high inflows.”
The FY25 haul exceeded even the government’s own forecasts. In April, SBP Governor Jameel Ahmad had revised the central bank’s projection for the year to $38 billion, up from an earlier estimate of $36 billion, signaling cautious optimism that has now been validated.
June remittances climbed 7.9% year-on-year to $3.4 billion but dipped 8% from May’s $3.69 billion.The numbers reveal a mixed picture: steady annual growth tempered by a seasonal softening.
Saudi Arabia remained the top source, with expatriates there sending $823 million in June, 2% more than the $809 million recorded a year earlier, but 10% less than May’s tally. The United Arab Emirates saw a robust 10% year-over-year increase, with inflows rising to $717 million from $654 million. Remittances from the United Kingdom hit $538 million, a 10% improvement from June 2024, though down 9% from May’s $588 million. US-based Pakistanis contributed $281 million, an 11% drop from the prior month.
The surge mirrors trends across South Asia. “In a year marked by economic challenges, overseas workers stepped up,” Mohammed Sohail, CEO of Topline Securities, wrote on X, drawing a parallel with Bangladesh. “Pakistan received a record $38.3 billion in remittances in FY25, up 27%. Bangladesh also saw record inflows of $30 billion, up 26%.”
“A big source of support for both economies, helping bridge external gaps and boosting household incomes.”
Prime Minister Shehbaz Sharif welcomed the figures, framing them as a vote of confidence in his administration’s agenda. “The record surge in remittances reflects expatriate Pakistanis’ valuable contributions and their confidence in the national economy,” Sharif said, according to a statement from the Prime Minister’s Office.
He added that the government was “committed to economic prosperity after bringing economic stability,” calling recent positive indicators a “manifestation of the government’s policies in the right direction.”
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