Pakistan receives record USD 4.1 billion in remittances

Islamabad: Dollar-starved Pakistan received a record USD 4.1 billion in remittances in March, the highest monthly inflow, the State Bank of Pakistan said on Monday.

SBP chief Jameel Ahmad while addressing an event at the Pakistan Stock Exchange (PSX) said remittances sent by overseas Pakistani workers soared year-on-year in February 2025, reaching USD 3.12 billion, a 3.8 per cent increase compared to January 2025.

“This marks the first time that remittances have crossed the USD 4 billion threshold in a single month,” he said, adding that it showed a 37 per cent increase year-on-year compared to USD 2.95 billion in March last year.

The data showed that in the first nine months of FY25 (July-March), remittances reached USD 28.07 billion -- a 33 per cent increase -- compared to USD 21.04 billion in the same period a year ago.

Ahmad confirmed the surge in inflows provided crucial support to the economy, foreign exchange reserves, and liquidity for importers.

The SBP chief said the foreign exchange reserves would exceed USD 14 billion by June, adding that while foreign debt obligations for FY25 stood at USD 26 billion, the government expected USD 16 billion to be rolled over or refinanced, reducing net repayment pressure to around USD 10 billion.

He also highlighted the signs of economic recovery but said overall GDP growth for FY25 was expected to be around 3 per cent, lower than the projections of over 4.2 per cent.

He said the reduction in GDP targets was due to a lower agricultural output.

Pakistan for years has struggled to bring its balance of payment at a sustainable level but without much success.

Consequently, the country had to rush to the International Monetary Fund for loans. Last year, Pakistan got USD 7 billion from the fund which helped it avoid default.

Separately, Prime Minister Shehbaz Sharif termed the record rise in remittances as a reflection of their trust in the government’s policies.

Addressing the Overseas Pakistanis Convention in Islamabad, Sharif said the remittances reflect the "dedication, passion, and trust of overseas Pakistanis in the country’s economy and the government’s policies”.