Pakistan experienced a significant boost in remittances during March 2025, with inflows surpassing $3.5 billion—a 15% increase compared to February’s $3.11 billion. This surge is largely attributed to the financial contributions of overseas Pakistani workers during the holy month of Ramazan.

The cumulative remittances for the first eight months of the fiscal year 2024-2025 (July to February) totaled $23.96 billion, reflecting a 32.5% rise over the same period in the previous fiscal year. Initially, the government set a remittance target of $35 billion for FY25; however, financial experts now anticipate that the total inflows could reach up to $36 billion by the end of the fiscal year.

A notable portion of these remittances originated from Saudi Arabia and the United Arab Emirates (UAE). During the July-February period, remittances from Saudi Arabia increased by 34.6% to $5.89 billion, while those from the UAE surged by 56% to $4.85 billion.

The substantial increase in remittances has provided the Pakistani government with much-needed financial relief, easing the burden of external debt repayments and bolstering the national exchange rate. Zafar Paracha, General Secretary of the Exchange Companies Association of Pakistan (ECAP), highlighted that exchange companies sold approximately $450 million to banks in March, significantly higher than in February and the same month in 2024.

This upward trend in remittances underscores the vital role of overseas Pakistani workers in supporting the nation’s economy, particularly during key periods such as Ramazan.