KARACHI: The State Bank of Pakistan (SBP) has reported a substantial increase in remittances, receiving nearly $35 billion during the first eleven months (July to May) of the fiscal year 2024-25. This significant growth highlights the increasing role of overseas Pakistanis in supporting the country’s economy through foreign inflows.
According to official data released by the SBP, total workers’ remittances for July–May FY25 reached $34.9 billion, marking a 28.8% increase compared to the $27.1 billion received in the same period of the previous fiscal year.
In May 2025 alone, the SBP recorded an inflow of $3.7 billion in remittances. This represents a 16% Month-on-Month (MoM) increase from April 2025 and a 13.7% Year-on-Year (YoY) rise compared to May 2024. These figures underscore consistent growth and resilience in remittance inflows despite global economic uncertainties.
The SBP further noted that the majority of these remittances were sourced from key regions where large Pakistani expatriate communities reside. During May 2025, the highest contributions came from Saudi Arabia ($913.9 million), followed by the United Arab Emirates ($754.2 million), the United Kingdom ($588.1 million), and the United States ($314.7 million).
Analysts attribute this upward trend in remittances to multiple factors including improved documentation of money transfers through official banking channels, SBP’s digital payment initiatives, and seasonal inflows linked to Eid festivities. Moreover, increased confidence in Pakistan’s financial system and policy measures by the SBP to facilitate smoother remittance flows also played a vital role.
With just one month remaining in FY25, the SBP is optimistic that the total volume of workers’ remittances could surpass the $36 billion mark by the fiscal year-end, setting a new record and providing crucial support to the country’s foreign exchange reserves and balance of payments.
With continued reforms and stronger financial linkages, the SBP expects remittances to remain a key pillar of economic progress.
