In FY25, Pakistan records a historic high of $38.3 billion in remittances.
In the fiscal year 2025 (FY25), remittance inflows into Pakistan reached a historic high of $38.3 billion, marking a significant increase of 26.6% compared to the previous fiscal year's $30.3 billion. This upward trend, evident since 2024, has provided critical support to Pakistan's external account and stimulated economic activity.
According to Mohammed Sohail, CEO of Topline Securities, remittances from both Pakistan and Bangladesh have been a big source of support for their respective economies. The growth in remittances reflects enhanced confidence among overseas Pakistanis in the country's financial system.
A key driver of increased inflows has been the growing trust of overseas Pakistanis in the country’s banking and remittance infrastructure. Pakistan’s 2025-26 federal budget aims at economic stability and growth, with fiscal discipline and relief for the salaried class, creating positive expectations and economic confidence that encourage remittances.
Globally, remittances to low- and middle-income countries (LMICs) like Pakistan are expected to grow moderately, with an overall increase projected up to $690 billion by 2025. Pakistan appears to have navigated these trends effectively, with regional fluctuations due to geopolitical uncertainties and economic conditions in migrant-hosting countries.
The country's large diaspora, especially in the Middle East, Europe, and North America, continues to remit steadily, bolstered by formal channels that may have improved due to better exchange rates, reduced transaction costs, or regulatory measures encouraging formal remittance routes.
The remittance surge provides critical support to Pakistan’s foreign exchange reserves and balance of payments, reducing external sector pressures. It may contribute to more stable currency demand and availability of foreign currency for imports and debt servicing.
In June 2025, the inflow of overseas workers' remittances was $3.4 billion. Overseas Pakistanis in Saudi Arabia remitted the largest amount, sending $823 million, while remittances from the United Kingdom amounted to $538 million, down by 9% compared to May 2025. The amount remitted from Saudi Arabia in June 2025 was down 10% on a monthly basis, and 2% higher than the same month of the previous year. Overseas Pakistanis in the US sent $281 million in June 2025, a MoM decrease of 11%. Inflows from the United Arab Emirates (UAE) rose by 10% year over year, from $654 million to $717 million in June 2025.
In conclusion, the historical trend since 2024 shows a robust increase in remittance inflows to Pakistan, driven largely by increased diaspora trust, government economic policies, and favorable global remittance dynamics. This trend is expected to continue, providing a stable foundation for Pakistan's economic growth and development.
In light of the increased trust of overseas Pakistanis in the country's banking and remittance infrastructure, the CEO of Topline Securities, Mohammed Sohail, notes that remittances from both Pakistan and Bangladesh have played a significant role in supporting their respective economies. For the 2025-26 fiscal year, Pakistan's federal budget aims to capitalize on this trend, focusing on economic stability and growth, and offering fiscal discipline and relief for the salaried class to further stimulate remittance inflows, presenting valuable options for the nation's financial strategies.
