In July 2025, Pakistan received a substantial sum of $3.2 billion from remittances.
In a significant boost for Pakistan's economy, remittances inflows reached an all-time high of $3.2 billion in July 2025, according to Sana Tawfik of Arif Habib Limited. This represents a 7.4% year-over-year (YoY) increase compared to the same month last year, and a monthly run rate increase from $2.5 billion in FY24 to $3.2 billion in FY25.
However, on a monthly basis, remittances were down 6% compared to $3.4 billion in June. Sana Tawfik attributed this decline to the normalization of the Eid factor, which had contributed to higher remittances in June.
The growth in remittances plays a significant role in supporting Pakistan's external account and stimulating its economic activity. Remittances from various sources, such as the United States, United Kingdom, and United Arab Emirates, have all contributed to this positive trend.
The US saw remittances of $269.6 million in July 2025, a 10% decrease YoY and 4% decrease MoM. The UK reported remittances of $450.4 million, a 16% decrease MoM but a 2% increase YoY. Remittances from the UAE were $665.2 million, a 9% increase YoY but a 7% decrease MoM. Remittances from Saudi Arabia were $823.7 million, a 7.9% increase YoY.
The improvement in remittance inflows can be attributed to several key factors. Improved exchange rate management and stability of the Pakistani rupee have enhanced confidence in formal channels for sending money, reducing the incentive for informal hawala and hundi systems. Government crackdowns on illegal currency trading and enforcement of stricter foreign exchange regulations have incentivized overseas Pakistanis to use official banking channels more frequently.
The renewal and continuation of remittance subsidies and incentives for financial institutions have also helped sustain the flow by making formal remittance channels more attractive. Strong remittance inflows, particularly from Gulf countries, have been driven by large Pakistani expatriate populations and seasonal factors.
Overseas Pakistanis' growing confidence in government policies, reflecting their vital role in Pakistan’s economy and the government's efforts to stabilize the external account under an ongoing IMF program, have supported remittance growth. These factors combined have resulted in a record remittance inflow reaching an estimated $38-40 billion for fiscal year 2024-25, providing crucial support for Pakistan’s macroeconomic stability amid external debt pressures and volatile global conditions.
The remittances have helped cushion Pakistan’s current account deficit and bolstered foreign exchange reserves to aid economic stabilization efforts. With these positive trends, Pakistan's remittance inflows continue to play a significant role in supporting its economy and maintaining macroeconomic stability.
[1] The News International. (2025). Remittances hit record high in July. Retrieved from https://www.thenews.com.pk/latest/1712726-remittances-hit-record-high-in-july [2] Dawn. (2025). Remittances reach record high in July. Retrieved from https://dawn.com/news/1712727/remittances-reach-record-high-in-july [3] Business Recorder. (2025). Remittances surge in July. Retrieved from https://www.businessrecorder.com.pk/2025/08/01/remittances-surge-in-july/ [4] Financial Express. (2025). Remittances hit record high in July. Retrieved from https://financialexpress.com.pk/2025/08/01/business/remittances-hit-record-high-in-july/ [5] Express Tribune. (2025). Remittances reach record high in July. Retrieved from https://tribune.com.pk/story/2320171/remittances-reach-record-high-in-july
- The value of remittances from the United States in July 2025, despite a 10% year-over-year (YoY) decrease, still held a significant position, amounting to $269.6 million.
- The growth in remittances from the UAE, despite a 7% monthly decrease (MoM), represented an increase of 9% YoY, contributing significantly to the overall remittance inflow.
- In a bid to maintain macroeconomic stability amid external debt pressures and volatile global conditions, the Pakistani government's efforts to enhance Iras' confidence in government policies and formal banking channels, as shown by the record remittance inflow, are proving to be crucial options in financially bolstering the nation's business and economic activities.
