Record Remittances Boost Pakistan’s Economic Outlook

State Bank of Pakistan (SBP) Governor Jameel Ahmad announced on Monday that Pakistan witnessed an unprecedented $4.1 billion in remittances from overseas workers in March 2025.

Ahmad stated that the central bank has adjusted its forecast for total remittances to $38 billion for the entire fiscal year 2025, up from the previous projection of $36 billion.

Data from the SBP confirmed that the inflow of remittances from Pakistani workers abroad reached $4.1 billion in March 2025, surpassing the $4 billion mark for the first time.

Remittances demonstrated a robust surge of 37% compared to the $2.95 billion recorded in the same month of the prior year. Moreover, on a month-over-month basis, remittances increased by 30% from $3.12 billion in February.

The SBP governor addressed attendees at the Pakistan Stock Exchange (PSX) on Monday, marking the commencement of financial literacy week nationwide.

Acknowledging the robust level of remittances, Ahmad voiced optimism that the current account would maintain a surplus throughout the ongoing fiscal year. He emphasized, “There will be a notable surplus, representing the strongest performance on the external account in the past two decades.”

The central bank’s chief also revised upward the projection for foreign exchange reserves (held by SBP) to $14 billion by the close of June 2025. The bank’s earlier estimate had placed FX reserves at $13 billion by the end of June.

Forex Reserves Rise

He foresaw expansion in the SBP reserves, notwithstanding a $2 billion reduction in FX over the last couple of months due to debt repayments, which currently stand at $10.6 billion.

He predicted that Pakistan would secure $4-5 billion from external sources by the conclusion of June. These inflows would incorporate funds from global financial institutions.

He observed that Pakistan’s economic activities have improved, with imports escalating to $5.7 billion per month.

“Therefore, those who believe that import restrictions are in place or that economic activity is not accelerating should examine the data,” he added.

Ahmad anticipates economic growth of 3% for FY25.

He explained, “It would have increased to 4.2% this year if agricultural output had remained strong at the previous year’s level of 8%.”

However, he cautioned that inflation readings would begin to rise starting this month, following a six-decade low of 0.7% achieved in March 2025.