KARACHI(National Times)- Workers’ remittances to Pakistan reached a record high of $38.3 billion in fiscal year 2025, reflecting a 26.6% year-on-year increase from $30.3 billion in FY24, the State Bank of Pakistan (SBP) said on Monday. In June 2025 alone, remittances stood at $3.4 billion, marking a 7.9% increase compared to the same month last year.  According to Topline Securities, “Pakistan’s remittances came at US$3.4bn in Jun 2025, up 8% year-on-year. This takes FY25 remittances to $38.3bn, up 27% YoY. FY25 marks the highest ever annual remittances received by Pakistan.” Remittances have been on the rise, peaking at a record-breaking $4.1 billion in March, the highest single-month inflow ever recorded. Analysts attributed this sharp rise to a combination of factors including economic recovery, stability in the exchange rate, and incentives introduced by both the government and the central bank. “The country received a record $38.3 billion in remittances in FY25 — up 27%,” said Mohammed Sohail, CEO of Topline Securities. According to the SBP, Saudi Arabia remained the largest source of remittances in June 2025, contributing $823.2 million, followed by the United Arab Emirates with $717.2 million, the United Kingdom with $537.6 million, and the United States with $281.2 million. Analysts attribute the growth to multiple factors: ongoing economic recovery supported by the International Monetary Fund’s loan programme, exchange rate stability, targeted remittance incentives, and improvements in Pakistan’s banking and financial infrastructure, which have encouraged greater use of formal channels by overseas Pakistanis. Earlier this year, SBP Governor Jameel Ahmad had projected annual remittances would approach $38 billion in FY25, up from $30.3 billion in FY24. The government has now set a remittance target of $39.4 billion for FY26. In addition, the government has projected a current account deficit of $2.1 billion, or 0.5% of GDP, for FY26 — revised from an expected $1.5 billion surplus, or 0.4% of GDP, for FY25.