Pakistan Remittances Update: Received A Record $4.1 Billion Remittances in March 2025

The State Bank of Pakistan (SBP) has announced that workers’ remittances surged to an all-time high of USD 4.1 billion in March 2025, marking a 37% year-on-year (YoY) increase. This breaks the previous record of USD 3.2 billion set in May 2024, reflecting strong growth in overseas Pakistanis’ contributions to the economy.

Key Highlights of Pakistan Remittances Growth

1. Record-Breaking Monthly Inflows

• March 2025 remittances: USD 4.1 billion (highest ever in a single month).
• Previous record: USD 3.2 billion (May 2024).
• Yearly growth: 37% increase YoY, showing accelerating inflows.

2. 9MFY25 Cumulative Remittances Reach USD 28 Billion

• Total remittances for first nine months of FY25: USD 28.0 billion (up 33.2% YoY).
• GCC countries lead growth: 39.1% increase (Saudi Arabia, UAE, Qatar, Oman driving inflows).

3. Why Are Remittances Increasing?

• Rising emigration: More Pakistanis working abroad, especially in Gulf countries and Europe.
• Stable exchange rates: Narrow gap between interbank and open market rates encourages formal transfers.
• Government incentives: Efforts to curb hawala/hundi and promote official banking channels.

Economic Impact of Rising Remittances

• Supports foreign exchange reserves amid trade deficits.
• Eases pressure on Pakistan’s current account deficit.
• Boosts household incomes, driving domestic consumption.

Forecast: Can Pakistan Cross USD 35 Billion in FY25?

If the current trend continues, FY25 remittances could exceed USD 35 billion, setting a new annual record. However, risks like global economic slowdowns or policy changes in host countries (e.g., Saudi Arabia’s Nitaqat program) may affect future flows.

How Pakistanis Are Sending More Money Home?

• Bank transfers (via SBP-approved channels).
• Digital wallets & fintech apps (increasingly popular).
• Exchange companies offering competitive rates.

The record remittances in March 2025 highlight the critical role of overseas Pakistanis in stabilizing the economy. With improved policies and higher migration, Pakistan is on track for its highest-ever annual remittance inflows.