Pakistan’s Remittances Jump to $3.7 Billion in May 2025, Boosting Economic Stability
The State Bank of Pakistan (SBP) reported that remittance inflows hit $3.7 billion in May 2025, marking the highest monthly inflow of the fiscal year so far. This represents a 13.7% year-on-year increase from $3.24 billion in May 2024, and a 16% rise month-over-month from April 2025’s $3.18 billion.
This sustained growth in workers’ remittances has provided a much-needed buffer for Pakistan’s external account, helping the country weather fiscal pressures and global uncertainty.
July-May FY25: $34.9 Billion and Counting
Cumulatively, during the first 11 months of FY2024-25, overseas Pakistanis sent $34.9 billion, up 28.8% compared to $27.1 billion received in the same period last fiscal year.
“There will be a substantial surplus, and this is the best performance on the external account during the last two decades,”
— SBP Governor Jameel Ahmad, April 2025.
The robust inflows have been critical in stabilizing the rupee, building foreign exchange reserves, and keeping the current account in surplus, as previously forecasted by the SBP.
Country-wise Remittance Breakdown – May 2025
1. Saudi Arabia – $913.9 million
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MoM increase: 26%
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YoY increase: 12%
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Largest single contributor to Pakistan’s remittance earnings.
2. United Arab Emirates (UAE) – $754.2 million
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MoM increase: 16% (from $652.6 million)
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YoY increase: 13%
3. United Kingdom (UK) – $588.1 million
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MoM increase: 10%
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YoY increase: 24%
These three countries continue to dominate Pakistan’s remittance inflow sources, reflecting the strong diaspora presence and stable earnings of expatriate workers in the Middle East and Europe.
Why This Matters
Remittances are Pakistan’s largest non-debt external financing source, and the strong May inflow:
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Supports the exchange rate
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Eases pressure on the current account
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Strengthens household incomes in remittance-reliant communities
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Injects liquidity into the domestic consumption cycle
The increase also aligns with SBP’s outlook for a sustained external account surplus in FY25 — a rare bright spot for an economy managing structural reforms and fiscal consolidation.
