In a remarkable economic development, Pakistan recorded its highest-ever home remittances during the fiscal year FY25. The total inflow exceeded $38 billion, marking a historic milestone for the country’s economy. This major increase has been attributed to strong policy efforts by the federal government and the State Bank of Pakistan (SBP).
On Wednesday, the SBP released data confirming a 27% rise in home remittances compared to the previous year. Overseas Pakistanis sent a total of $38.3 billion between July and June of FY25. This was a sharp increase from $30.25 billion during the same period in FY24. That’s an $8 billion jump in just one year.
SBP Governor Jameel Ahmad had earlier adjusted the target from $36 billion to $38 billion. The new figure not only met expectations but slightly exceeded them.
Khurram Schehzad, advisor to the finance minister, praised the growing trust of overseas Pakistanis. He credited their confidence in the current economic roadmap and policies. According to him, the record-breaking inflows have improved domestic liquidity. They’ve also strengthened the country’s external financial position and enhanced foreign exchange reserves.
He emphasized that these workers’ remittances show the solid faith that the diaspora has in Pakistan’s economic future.
The SBP revealed that Saudi Arabia remained the top source of money transfers. It contributed 24% of the total overseas inflows. In FY25, remittances from Saudi Arabia reached $9.345 billion, up from $7.424 billion in FY24. That’s a 26% increase.
The United Arab Emirates followed closely. The UAE sent $7.9 billion in diaspora remittances, showing a 42% surge from the previous year’s $5.5 billion.
In addition, the United Kingdom sent $6 billion in inflows, showing a 31% increase. The United States contributed $3.7 billion, which is a 5% rise from the last year.
Month-to-month numbers also reflect positive momentum. In June 2025, Pakistan received $3.406 billion in home remittances. This was higher than the $3.15 billion received in June 2024. However, it was slightly lower than the $3.7 billion recorded in May 2025.
March 2025 stood out for receiving the highest ever monthly money transfers of over $4 billion. This spike came due to Eid-related inflows.
Mohammad Sohail, CEO of Topline Securities, highlighted the significance of these inflows. He noted that they came at a time of economic challenges. According to him, Pakistanis living abroad displayed strong financial support despite uncertainty.
He also pointed out a similar trend in Bangladesh. That country recorded $30 billion in overseas inflows, a 26% increase. He said this financial support plays a key role in bridging external gaps and uplifting household earnings in both nations.
