Pakistan Records Historic $4.1 Billion in March 2025 Remittances
Pakistan witnessed a significant surge in workers’ remittances, reaching a record high of $4.1 billion in March 2025, according to State Bank Governor Jameel Ahmad. The strong inflows mark a key financial boost for the country’s economy, foreign exchange reserves, and liquidity.
Consistent Growth in Remittances
Remittances from overseas Pakistanis have shown consistent year-on-year growth. In February 2025, inflows rose to $3.12 billion, while January 2025 saw a 3.8% increase in remittances compared to the previous month.
Over the first nine months of FY2024-25 (July to March), total remittances reached $28.07 billion, reflecting a 33% increase compared to the same period last year.
Country-Wise Breakdown for March
According to a report by AKD Securities, the major sources of remittance inflows in March were:
-
Saudi Arabia: $987 million
-
United Arab Emirates (UAE): $842 million
-
United Kingdom: $684 million
-
United States: $419 million
Improved Foreign Reserves Outlook
Speaking at the Pakistan Stock Exchange (PSX), Governor Ahmad revealed that foreign exchange reserves are projected to exceed $14 billion by June 2025.
Regarding external debt, he noted that Pakistan’s repayment obligations for FY25 stand at $26 billion. However, approximately $16 billion is expected to be rolled over or refinanced, easing pressure on the country’s financial position.
Economic Recovery Underway
Governor Ahmad emphasized signs of economic revival. He stated that if agricultural output had matched last year’s performance, GDP growth could have exceeded 4.2%. However, due to a weaker-than-expected agriculture season, the current GDP growth estimate is around 3%.
“Every indicator is suggesting that economic activity has picked up substantially,” he said, adding that the full impact is not yet reflected in growth figures due to challenges in the agricultural sector.
Inflation Hits Historic Low
On the inflation front, Pakistan has seen encouraging progress. In March 2025, Consumer Price Index (CPI) inflation dropped to just 0.7% year-on-year, marking the lowest level since December 1965. This decline surpassed both market expectations and the Ministry of Finance’s projections, which ranged between 1% and 1.5%.
The sharp drop in inflation was driven by:
-
Lower prices of wheat and its by-products
-
Decreased rates of perishable food items like onions and potatoes
-
Reduced electricity charges
Governor Ahmad stated that this outcome was in line with the State Bank’s forecasts, presented to the Monetary Policy Committee earlier in March.
Looking Ahead
Pakistan’s economy is showing signs of recovery following a severe financial crisis in 2023, which saw inflation peak at 38% in May and foreign reserves fall to $4.6 billion—barely enough to cover three weeks of imports. The crisis led to a $7 billion IMF bailout package.
The International Monetary Fund (IMF) projects that Pakistan’s economic growth will gradually improve to 4.5% by 2029.
