Pakistan is on its way to achieving a major financial milestone by surpassing its revised annual remittance target of $38 billion. From July to May in the fiscal year 2025, the country has already received $35 billion in remittances from overseas Pakistanis.
In May alone, remittances increased by 16% compared to the previous month and by 13.7% compared to May last year. The original remittance target was set at $35 billion, but due to record-breaking inflows, it was raised to $38 billion.
Saudi Arabia remained the largest contributor, making up 24.3% of the total remittances. The United Arab Emirates (UAE) showed the highest growth, with a 45.7% increase in remittances compared to last year. Interestingly, remittances from the European Union reached $4.1 billion, which was higher than the $3.41 billion received from Gulf Cooperation Council (GCC) countries.
The United Kingdom sent $5.37 billion, while the United States contributed $3.44 billion during this period.
Experts say that the stable exchange rate helped increase remittances. However, they also noted that efforts to build foreign reserves by reducing imports have slightly slowed down Pakistan’s economic growth.
