Gulf remittances drive record $38.3 billion inflow to Pakistan in FY25, surpassing IMF loan package

A money changer waits for customers as he sits on a bike beside a money exchange stall decorated with pictures of banknotes in Karachi, Pakistan September 30, 2021. (REUTERS/File)
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Updated 09 July 2025
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Gulf remittances drive record $38.3 billion inflow to Pakistan in FY25, surpassing IMF loan package

  • Remittances rose by around $8 billion from FY24’s $30.25 billion, marking a sharp 27 percent increase
  • Saudi Arabia topped FY25 remittance sources with $9.34 billion, followed by UAE with $7.83 billion

KARACHI: Pakistan received a record $38.3 billion in workers’ remittances during the last fiscal year, reporting an increase of about $8 billion over a 12-month period that exceeds the country’s ongoing International Monetary Fund (IMF) loan program, according to official data and analysts on Tuesday.

The remittance surge from $30.25 billion in FY24 helped shore up the country’s foreign reserves, prompting experts to says it is likely to push the current account into surplus for the first time in over a decade.

The IMF Executive Board approved a $7 billion Extended Fund Facility (EFF) for Pakistan in April 2024, spanning 37 months, after acknowledging Islamabad’s structural reforms and stabilizing macroeconomic indicators.

The government described the bailout as critical to reviving an economy that had faced a prolonged financial crisis and balance-of-payments stress over the past two years.

“Remittances have actually rescued Pakistan beyond expectations. It was a significant jump of over $8 billion in annual remittances, which is more than the whole IMF program funding,” Shankar Talreja, head of research at Topline Securities Limited, told Arab News after the central bank released remittance figures for the last fiscal year.

“Thanks to the remittances, we will be able to record a current account surplus for the first time after 13 years of deficit and for only the second time in the last two decades,” he added.

According to the State Bank of Pakistan, Saudi Arabia led all contributors during FY25, with remittances totaling $9.34 billion, followed by the United Arab Emirates at $7.83 billion, the United Kingdom at $5.99 billion and the United States at $3.72 billion.

Remittances from Gulf Cooperation Council (GCC) countries excluding Saudi Arabia and the UAE totaled $3.71 billion, while EU countries contributed $3.53 billion.

Commenting on the data, Mohammed Sohail, CEO of Topline Securities, wrote on social media: “Record Remittances When Most Needed. In a year marked by economic challenges, overseas workers stepped up: Pakistan received a record USD 38.3 billion in remittances in FY25 — up 27 percent.”

The fiscal year average stood at approximately $3.19 billion per month, well above the average of $2.52 billion in FY24.


Pakistan PM orders safeguards for legitimate travelers amid airport off-loading complaints

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Pakistan PM orders safeguards for legitimate travelers amid airport off-loading complaints

  • Over 66,000 passengers were off-loaded this year by Pakistani authorities as part of a crackdown on illegal migration
  • Instruction comes a day after Greece rescued about 540 illegal migrants at sea, including several Pakistani nationals

ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday acknowledged complaints over passenger off-loading at airports and ordered safeguards for legitimate travelers, as he chaired a meeting on human smuggling a day after Greece rescued hundreds of migrants, including Pakistanis, at sea.

Earlier this week, the Federal Investigation Agency (FIA) said in a briefing to a parliamentary committee that more than 66,000 passengers had been off-loaded from Pakistani airports this year over suspected irregular travel, while tens of thousands were deported from Gulf states and other countries amid a broader crackdown on illegal migration.

The meeting chaired by Sharif reviewed enforcement measures aimed at curbing human smuggling and illegal immigration, with officials highlighting a 47 percent decline in illegal migration to Europe from the country following intensified screening at departure points.

“In taking action against those traveling illegally or holding suspicious travel documents, special care must be taken to ensure that passengers with valid documents are not affected,” the prime minister said, according to a statement issued by his office.

Sharif also ordered improvements in coordination between the FIA, the Protectorate of Emigrants and other agencies to facilitate Pakistanis traveling abroad legally for employment, while calling for stricter action against corrupt officials.

The meeting was also briefed about a growing reliance on technology by the immigration authorities to address weaknesses in the existing system. Authorities said work was under way to expand the use of electronic gates at airports, allowing automated identity verification to reduce discretionary checks.

Officials also said Pakistan was developing a mobile application to access passenger data and integrating advance passenger information and passenger name record (API-PNR) systems, enabling authorities to flag potentially fraudulent travel documents before departure.

Artificial intelligence tools are being introduced to support risk assessment and targeted screening, the statement added.

Pakistan intensified action against illegal migration in 2023 after hundreds of people, including its own nationals, died while attempting to cross the Mediterranean in an overcrowded fishing vessel that sank off the Greek coast, prompting widespread outrage and scrutiny of smuggling networks.

The meeting followed a Greek coast guard statement on Friday saying it rescued about 540 migrants from a fishing boat south of the island of Gavdos, transferring them to temporary facilities on Crete. Greek authorities said the group included nationals of Pakistan, Bangladesh and Egypt.

The latest rescue highlights how, despite tighter controls and airport screening at home, migrants continue to seek dangerous routes to Europe, largely driven by economic hardship and the promise of work in richer countries.