Pakistan records highest-ever monthly remittances as inflows hit $4.05bn

ISLAMABAD: Pakistan received a record-breaking $4.05 billion in workers’ remittances in March 2025, marking the highest monthly inflow in the country’s history, according to data released by the State Bank of Pakistan (SBP).

This reflects a 37 per cent increase compared to $2.95 billion received in the same month last year.

The month-on-month increase was also notable, with remittances rising by 30 per cent from $3.12 billion in February. The surge has been linked to Eid-related transfers, a stronger shift towards formal banking channels, and improving economic conditions in the Gulf countries, where most of Pakistan’s overseas workers are based.

Between July and March of the current fiscal year (FY25), remittances have reached $28 billion—an increase of 17.5 per cent compared to $23 billion during the same period in FY24.

Saudi Arabia remained the top source of remittances in March, contributing $987.3 million, followed by the UAE ($842.1 million), the UK ($683.9 million), and the US ($419.5 million).

In response to the unexpectedly strong inflows, the SBP has revised its full-year remittance forecast to $38 billion, up from the earlier estimate of $36 billion.

SBP Governor Jameel Ahmad, speaking at the launch of Financial Literacy Week in Karachi, said that Pakistan’s foreign exchange reserves—under pressure from recent debt repayments—are now expected to reach $14 billion by the end of June, compared to a previous projection of $13 billion.

He added that the country is likely to receive an additional $4-5 billion from multilateral lenders and other sources before the end of the fiscal year.

“These inflows could result in a current account surplus—possibly the strongest external position Pakistan has had in two decades,” Ahmad noted.

Despite a recent $2 billion drop in reserves, the SBP remains optimistic, pointing to resilient remittances and an improving economic outlook.

Prime Minister Shehbaz Sharif also welcomed the development, calling it a sign of overseas Pakistanis’ confidence in the economy. He praised the diaspora’s continued support and described them as a vital national asset, reaffirming the government’s commitment to facilitating their contributions.

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