In March 2025, Pakistan achieved a historic milestone by receiving $4.1 billion in remittances from overseas workers, marking the highest monthly inflow in the country’s history. This significant increase of 37.3% year-on-year and 29.8% month-on-month underscores the vital role of remittances in bolstering Pakistan’s economy.
The surge in remittances can be attributed to several factors. Seasonal inflows during Ramadan and Eid, improved economic conditions in host countries, and increased confidence in Pakistan’s economic policies have all contributed to this uptick. Notably, the narrowing gap between interbank and open market exchange rates has encouraged the use of official channels for remittance transfers.
A breakdown of the remittance sources reveals that Saudi Arabia led with $987.3 million, followed by the United Arab Emirates at $842.1 million, the United Kingdom at $683.9 million, and the United States at $419.5 million. These four countries accounted for nearly 72% of the total inflows during the month.
Cumulatively, remittances for the first nine months of the fiscal year 2025 (July-March) have reached $28.07 billion, reflecting a substantial 33.2% increase compared to the same period in the previous fiscal year.
The State Bank of Pakistan (SBP) has revised its projection for total remittances in FY25 from $36 billion to $38 billion, anticipating continued robust inflows. This optimistic outlook is bolstered by the country’s improved economic indicators and the government’s commitment to facilitating overseas Pakistanis.
Prime Minister Shehbaz Sharif expressed his appreciation for the overseas Pakistani community, stating that the record remittances reflect their trust in the government’s policies. He emphasized the government’s dedication to providing all necessary facilities to overseas Pakistanis.
In conclusion, the unprecedented remittance inflows in March 2025 have provided a significant boost to Pakistan’s economy, reinforcing the importance of the overseas Pakistani community in the nation’s economic development.
