On July 9, 2025, the State Bank of Pakistan (SBP) reported a record-breaking $38.3 billion in remittances for fiscal year 2024-25, with June alone contributing $3.4 billion, a 7.9% year-on-year increase.
The SBP announced that June 2025 remittances reached $3.4 billion, up 7.9% from $3.16 billion in June 2024, though down 8% from May’s $3.69 billion, per Business Recorder. The fiscal year total reached $38.3 billion, a 26.6% increase from $30.25 billion in FY24, driven by contributions from Saudi Arabia ($823.2 million), the UAE ($717.2 million), the UK ($537.6 million), and the U.S. ($281.2 million). The March 2025 peak of $4.1 billion underscored seasonal trends.
Samiullah Tariq from Pak Kuwait Investment Company attributed the increase in remittances to several factors: strict anti-money laundering measures, the growth of digital banking through apps like JazzCash, and stable exchange rates of 278–282 PKR/USD. The Ramadan and Eid festivals also contributed to heightened inflows, with 93% of remittances coming through formal channels, a significant rise from 75% in 2023.
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Remittances, which support 220 million Pakistanis, bolstered foreign exchange reserves to $14 billion, easing $10 billion in net debt repayments for FY25, according to SBP Governor Jameel Ahmad.
The inflows, which exceed foreign direct investment (FDI) by $270 billion globally, are used to support household expenses and small businesses. However, GDP growth is projected to decrease to 3%, down from 4.2%, due to setbacks in the agricultural sector, according to Dawn. This increase in inflows helps counter previous declines, such as the $3.7 billion loss experienced in FY23.
