Pakistan has witnessed a historic surge in workers’ remittances for March 2025, as the country received an unprecedented $4.1 billion, according to an announcement made by the Governor of the State Bank of Pakistan (SBP), Jameel Ahmad. This remarkable increase has prompted the central bank to revise its annual remittance forecast for the fiscal year 2025, reflecting optimism about the country’s financial outlook.
Speaking at the Pakistan Stock Exchange during the launch of Financial Literacy Week, Governor Jameel Ahmad shared the positive news and emphasized the crucial role of remittances in bolstering the nation’s economic position. The SBP now expects total remittances to reach $38 billion by the end of the fiscal year 2025, marking an upward revision from the previous estimate of $36 billion. This forecast increase is fueled by the substantial year-on-year growth in remittance inflows observed in March.
The surge in remittances has significantly strengthened Pakistan’s current account position. The Governor expressed confidence that the country’s current account would maintain a surplus throughout the fiscal year, which would represent the strongest external account performance in two decades. “We are seeing the strongest performance on the external account in two decades, with a substantial surplus expected,” Ahmad stated.
The remittances sent by Pakistanis working abroad have grown by an impressive 37% year-on-year, reaching $4.055 billion in March 2025. This increase compares to $3.124 billion received in the same month of the previous year. On a month-on-month basis, the inflows surged by 30%, which highlights the robust upward trajectory of remittance flows into Pakistan.
The record remittance inflows are largely attributed to growing confidence in the stability of the Pakistani Rupee, largely owing to a narrowing gap between interbank and open market exchange rates. Waqas Ghani, Head of Research and Senior Vice President at JS Global, explained to ProPakistani that the strengthened stability of the rupee, coupled with the implementation of stricter foreign exchange regulations, has fostered a favorable environment for remittances.
Additionally, the recent surge in immigration, particularly to Gulf countries, has contributed to this boost in remittance inflows. This trend has further enhanced the overall remittance landscape, benefiting Pakistan’s foreign exchange reserves.
A breakdown of the remittance inflows reveals that the highest contributions came from the Kingdom of Saudi Arabia, which sent a total of $987 million, followed by the United Arab Emirates (UAE) with $842 million. The United Kingdom (UK) contributed $684 million, while the United States (US) added $419 million, and remittances from European Union (EU) countries amounted to $433 million.
The data indicates significant growth in remittance flows from key regions. In particular, remittance inflows from Saudi Arabia saw a remarkable 40% year-on-year increase, while those from the UAE and the US rose by 54% and 12%, respectively. The UK experienced a 48% increase in inflows, while the EU recorded a 38% increase compared to the same month last year.
This record-breaking surge in remittances is expected to have a positive impact on Pakistan’s economy, further supporting the country’s foreign exchange reserves and helping stabilize its current account. Experts believe that the inflow of remittances has played a crucial role in ensuring the country’s financial stability, especially amid global economic challenges.
In conclusion, Pakistan’s exceptional remittance performance in March 2025 showcases the resilience of the country’s economy and the continued trust placed by overseas Pakistanis in the stability of the local currency and financial system. As remittances continue to grow, the central bank’s revised projection of $38 billion in remittance inflows for FY 2025 underscores the importance of these financial contributions in securing Pakistan’s economic future.