Remittances to Pakistan rose sharply to $3.68 billion in May 2025, marking a 16% increase from April and a 13.67% rise year-on-year, according to the State Bank of Pakistan. This strong growth continues the upward trend in remittance inflows. It also plays a key role in strengthening Pakistan’s foreign reserves and supporting the economy.
From July 2024 to May 2025, workers sent home $34.89 billion, up nearly 29% compared to the same period last year. The biggest contributors were Saudi Arabia ($913.95 million), UAE ($754.17 million), UK ($588.1 million), and US ($314.69 million). These four countries alone made up over 70% of total inflows in May.
March 2025 had earlier set a record with over $4.05 billion in monthly inflows, thanks to Ramadan and Eid-related transfers and better use of banking channels. Improved labour market conditions in the Gulf also helped. Analysts credit tighter monitoring and government incentives for the year-long surge.
Finance Minister Muhammad Aurangzeb said remittances might close the fiscal year between $37–38 billion, the highest in Pakistan’s history. This will support SBP’s reserves, expected to reach $1 billion, and ease pressure on the current account. The rise in inflows is also likely to boost Pakistan’s position in talks with the IMF.
Remittances are now a key non-debt source of foreign exchange for Pakistan. They help finance imports, support the rupee, and reduce deficit risks. However, experts warn that global risks, such as lower oil prices or instability in Gulf states, could slow down this growth. Even so, Pakistan looks set to hit a record high by the end of FY25.