Pakistan Hits Record High with $4.1 Billion in Remittances in March 2025

Pakistan witnessed a historic economic milestone in March 2025, with monthly remittances hitting an all-time high of $4.1 billion, providing a much-needed boost to the country’s economy.

A Historic Moment for Pakistan’s Economy

The State Bank of Pakistan (SBP) confirmed that March 2025 saw the highest-ever remittance inflow in a single month, crossing the $4 billion mark for the first time in history. This significant development not only marks a 37% year-on-year growth from March 2024 ($2.95 billion) but also a nearly 30% increase from February 2025’s inflows of $3.12 billion.

Key Contributors: Saudi Arabia, UAE, UK, and US

According to SBP Governor Jameel Ahmad, the largest share of these remittances came from the Middle East, particularly Saudi Arabia and the UAE, followed by strong contributions from the United Kingdom and the United States. Inflows from other Gulf and European countries also played a supportive role.

Why the Sudden Surge?

Several factors contributed to this record-breaking performance:

Ramadan-related seasonal giving
Stability in the exchange rate, making formal channels more appealing
Enhanced performance of digital and formal banking systems
Government crackdown on illegal channels like hawala and hundi
Increased awareness campaigns promoting legal money transfers

These efforts have collectively encouraged overseas Pakistanis to use official routes to send money home, ensuring transparency and stability in the financial system.

Strong Support for the Economy

The massive inflow of remittances offers short-term relief for Pakistan’s struggling economy, which continues to face inflationary pressure and external financing challenges. These funds help:

Boost foreign exchange reserves
Support the Pakistani rupee
Ease trade and current account deficits
Improve liquidity for importers

On the micro level, households use these remittances to pay for education, healthcare, housing, and daily living expenses—a lifeline for millions of families across the country.

$28 Billion Received in 9 Months

Between July 2024 and March 2025, Pakistan received a total of $28 billion in workers’ remittances, reflecting a significant 33.2% increase from the $21.04 billion received during the same period last year.

Future Outlook: Positive but Cautious

Despite this encouraging trend, the SBP governor revised Pakistan’s GDP growth forecast for FY25 to around 3%, down from earlier projections of 4.2%. The revision comes due to weaker-than-expected agricultural output. However, Ahmad expressed optimism about an ongoing economic recovery and anticipated that foreign exchange reserves could surpass $14 billion by June 2025.

He also stated that the government plans to roll over or refinance $16 billion of its foreign debt, reducing the net repayment obligation to around $10 billion, even though total external debt for FY25 stands at $26 billion.

Final Thoughts

The record $4.1 billion in remittances is not just a number—it’s a testament to the resilience and support of overseas Pakistanis. These inflows continue to play a critical role in stabilizing Pakistan’s financial foundation, offering hope for recovery amid global economic uncertainties.

As formal channels become more efficient and trusted, and with continued efforts to curb illegal money transfers, Pakistan could see sustained growth in remittance inflows—a vital asset for national progress.