Saudi Arabia, UAE, UK Lead as Pakistan’s Remittance Inflows Surge 29% This Fiscal Year
Pakistan’s workers’ remittances surged to $3.68 billion in May 2025, showing a sharp 13.67% year-on-year increase and a 16% rise from April, according to the State Bank of Pakistan (SBP). This boost continues a positive trend in foreign inflows, with cumulative remittances for the first eleven months (July–May) of FY2024–25 reaching $34.89 billion — a significant 28.79% jump compared to $27.09 billion during the same period last fiscal year.
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The major contributors to May’s remittances were Saudi Arabia, UAE, UK, and the USA, which collectively accounted for over 70% of total inflows. Notably, Saudi Arabia led with $913.95 million, followed by $754.17 million from the UAE, $588.1 million from the UK, and $314.69 million from the USA. This reflects the country’s continued reliance on Middle Eastern and Western economies where millions of Pakistani expatriates are employed, especially in the Gulf region.
Table: Remittance Inflows by Country (May 2025)
| Country | Remittances (USD Million) |
|---|---|
| Saudi Arabia | 913.95 |
| United Arab Emirates | 754.17 |
| United Kingdom | 588.10 |
| United States | 314.69 |
| Other Countries | Approx. 1,109.09 |
During his FY2025–26 budget speech, Finance Minister Muhammad Aurangzeb forecasted that remittances would close between $37–38 billion for the fiscal year, setting a new record. Rising remittance flows have helped bolster Pakistan’s external account, ease pressure on the State Bank’s foreign reserves, and finance the import bill. Analysts, however, caution that sustainability risks remain, especially if Gulf labour market conditions shift or global oil prices decline, which could disrupt this crucial lifeline for Pakistan’s economy.
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