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Record $4.1bn Remittances Boost Pakistan’s Economy in March
Pakistan hits a record high in March 2025 with $4.1bn in remittances a 37% jump from last year! SBP sees revival signs in the economy & inflation at a historic low of 0.7%.
ND
by News Desk
2025-04-14
Record $4.1bn Remittances Boost Pakistan’s Economy in March

In a significant boost to Pakistan’s economic outlook, remittances from overseas workers reached an all-time high of $4.1 billion in March 2025, according to State Bank of Pakistan (SBP) Governor Jameel Ahmad. This milestone marks a 37% year-on-year increase compared to March 2024, and a 3.8% rise from January 2025.

Speaking at the Pakistan Stock Exchange (PSX), Ahmad stated that total remittances for the first nine months of FY25 (July-March) had reached $28.07 billion — a substantial 33% surge from the same period last year. These inflows have provided critical support to the country’s economy, foreign reserves, and liquidity for importers.

Governor Ahmad projected that Pakistan’s foreign reserves would cross $14 billion by June 2025. Addressing concerns over foreign debt, he noted that while the total repayment obligation stood at $26 billion for FY25, around $16 billion was expected to be rolled over or refinanced, reducing actual repayment pressure to $10 billion.

He also signaled cautious optimism on the broader economy, noting a revival in economic activity. “Every indicator is indicating that the economic activity has substantially picked up,” he said. However, due to a weaker-than-expected agricultural season, the GDP growth projection was revised to approximately 3%, instead of the 4.2% it could have achieved with stronger agricultural output.

Brokerage reports from AKD Securities indicated that the March remittance inflows primarily originated from Saudi Arabia ($987 million), UAE ($842 million), UK ($684 million), and the US ($419 million). Topline Securities attributed the surge to seasonal effects from Ramazan and Eid.

Inflation also showed remarkable improvement, with the Consumer Price Index (CPI) inflation dropping to 0.7% year-on-year in March 2025 — the lowest reading since December 1965. The decline outperformed both market and Ministry of Finance expectations, largely driven by lower food and energy prices.

Prime Minister Shehbaz Sharif hailed the historic remittance inflow, thanking Pakistani expatriates and calling it a reflection of their trust in the government’s policies. Speaking at the Overseas Pakistanis Convention, he described overseas Pakistanis as a “valuable asset” and reaffirmed the government's commitment to supporting them.

This record inflow of remittances, combined with decreasing inflation and improving foreign reserves, signals cautious optimism for Pakistan’s economic trajectory. The International Monetary Fund (IMF), which had approved a $7 billion rescue package, projects that Pakistan’s growth will gradually improve to 4.5% by 2029.

 
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PakistanEconomy

StateBankOfPakistan

OverseasPakistanis

Remittances2025
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