ISLAMABAD: Pakistan recorded a sharp increase in workers’ remittances in May 2025, with inflows reaching $3.7 billion, according to data released by the State Bank of Pakistan (SBP) on Wednesday.
This marks a 16 percent month-on-month (MoM) rise compared to April 2025, when remittances stood at $3.18 billion.
On a year-on-year (YoY) basis, Pakistan’s remittances grew by 13.7 percent from $3.24 billion recorded in May 2024.
Cumulatively, Pakistan received $34.9 billion in remittances during the first eleven months (July-May) of the fiscal year 2024-25, reflecting a robust 28.8 percent increase from $27.1 billion during the same period of the previous fiscal year.
The SBP noted that remittances have played a crucial role in supporting the external account, stimulating economic activity, and enhancing household incomes across the country.
In April, SBP Governor Jameel Ahmad had forecast a strong external position for the country. “There will be a substantial surplus, and this is the best performance on the external account during the last two decades,” he had said.
Country-wise breakdown
According to the SBP, the highest remittance inflows in May originated from Saudi Arabia, totalling $913.9 million.
This reflects a 26 percent increase from April and a 12 percent rise compared to the same month last year.
Remittances from the United Arab Emirates stood at $754.2 million in May, up 16 percent month-on-month and nearly 13 percent year-on-year.
The United Kingdom contributed $588.1 million, marking a 10 percent increase from April and a notable 24 percent rise over May 2024.
Inflows from the United States reached $314.7 million, posting a 4 percent increase on a monthly basis.
Debt concerns
Despite the positive outlook on remittance inflows, the SBP’s recent debt report raised concerns over Pakistan’s fiscal sustainability.
The report stated that the federal government’s total debt reached Rs. 73.69 trillion by the end of March 2025, up 12.7 percent from Rs. 65.38 trillion in March 2024.
On a monthly basis, government debt increased by Rs. 652 billion, or 0.9 percent, compared to February 2025.
Domestic debt alone surged by 18.6 percent year-on-year, rising from Rs. 43.43 trillion in March 2024 to Rs. 51.52 trillion in March 2025.
