Pakistan’s remittances jump 26.6pc to all-time high of $38.3bn in FY25

ISLAMABAD: Pakistan’s overseas workers sent home a record $38.3 billion in fiscal year 2024-25, marking a strong 26.6 per cent jump from $30.25bn the year before, according to new data from the State Bank of Pakistan (SBP). 

This surge in remittances was helped by better job markets in countries where most Pakistani workers live, especially in the Gulf. Higher incomes and stronger currencies in those countries meant more money was being sent back home. 

Experts say the rise also came from more people using formal banking channels. Programmes like the Pakistan Remittance Initiative (PRI), backed by incentives from the SBP, helped move money away from informal methods like hundi and hawala. A relatively stable rupee and tighter rules in currency markets also made it easier and safer to send money through banks. 

“The strong inflows show growing trust in the country’s financial system,” said an SBP official. “It also shows how overseas Pakistanis are now more likely to use documented channels.” 

Remittances have played a key role in supporting the economy, helping boost foreign exchange reserves and providing a vital lifeline to families who depend on income from abroad. 

In June alone, remittances reached $3.4bn, up 7.8 per cent from the same month last year, though slightly down 7.5 per cent from May. 

Saudi Arabia remained the largest source of inflows in June, sending $823.2 million, followed by the UAE ($717.2m), UK ($537.6m), and the US ($281.1m). The European Union showed the strongest year-on-year growth at 34 per cent, while the UAE and UK rose by 10 per cent each. Saudi Arabia saw a modest 2 per cent increase, but remittances from the US dropped 13 per cent. 

According to the Bureau of Emigration & Overseas Employment, more than 14.38 million Pakistanis have moved abroad since 1970. Saudi Arabia leads the list with 7.39m migrants, followed by the UAE with 4.39m. Other top destinations include Oman, Qatar, Kuwait, Bahrain, and Malaysia, pointing to a long-standing trend of labour migration to the Middle East and Southeast Asia. 

Europe has also become a growing destination. The UK (51,878), Italy (31,602), and Romania (10,132) have seen steady inflows of Pakistani workers, mostly linked to long-term jobs and skilled professions. In North America, over 10,000 Pakistanis moved to the US, while many others are now settled in Canada. 

Remittances spiked in March 2025, crossing $4.05bn, driven by Eid spending, busy labour markets in the Gulf, and a continued shift to formal money transfer systems. 

For Pakistan, these funds remain a key source of economic support, helping millions of families and easing pressure on the country’s external finances.

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