Record Inflow of Remittances Reaches $4.1 Billion in March 2025

According to data released by the State Bank of Pakistan (SBP) on Monday, Pakistan experienced a significant surge in overseas workers’ remittances, reaching $4.1 billion in March 2025. This marks the first instance of remittances exceeding the $4 billion threshold.

The figures indicate a substantial 37% increase compared to the $2.95 billion recorded in the corresponding month of the previous year. Furthermore, on a month-over-month basis, remittances demonstrated a 30% rise from the $3.12 billion reported in February.

The cumulative inflow of workers’ remittances for Jul-Mar, FY25 totaled $28 billion, reflecting a 33.2% increase compared to the $21.04 billion received during Jul-Mar, FY24.

These remittances play a crucial role in bolstering the nation’s external account, fostering economic activity, and supplementing the disposable incomes of households dependent on these funds.

According to Wagas Ghani, Deputy Head of Research at JS Global, the record-high remittances are driven by increased confidence in the Pakistani Rupee’s stability, resulting from a narrowed gap between interbank and open market exchange rates.

Ghani further noted that this stability is primarily due to more stringent foreign exchange regulations. Additionally, the recent increase in immigration, particularly to Gulf countries, has contributed to the surge in remittance inflows.

However, some experts suggest that this inflow momentum may not be sustainable in the long run.

Sana Tawfik, Head of Research at Arif Habib Limited, anticipates a normalization to around $3-3.2 billion in the coming months.

Tawfik also projects that Pakistan’s current account will likely show a surplus of approximately $700-900 million in March, due to the record inflows.

Remittance Breakdown:
  • Saudi Arabia: $987.3 million (33% MoM increase, 40% YoY increase)
  • United Arab Emirates (UAE): $842.1 million (28% MoM increase, nearly 54% YoY increase)
  • United Kingdom: $683.9 million (38% increase from February 2025, 48% YoY improvement)
  • United States: $419.5 million (35% MoM increase)
Prime Minister’s Reaction:

Prime Minister Shehbaz Sharif expressed satisfaction with the unprecedented level of remittances.

In a statement issued by the Prime Minister’s Office (PMO), he stated that the record remittances reflect the confidence of overseas Pakistanis in the government’s policies.

The statement further emphasized that overseas Pakistanis not only bring honor to the country through their hard work abroad but also contribute to the nation’s economy through their remittances.

The Prime Minister reaffirmed the government’s commitment to providing comprehensive support to overseas Pakistanis.