Pakistan’s remittances surge 37% YoY in March, cross $4bn mark for first time

Remittance inflow since Jan 2024

The inflow of overseas workers’ remittances into Pakistan stood at $4.1 billion in March 2025, crossing the $4-billion mark for the first time, the State Bank of Pakistan (SBP) data showed on Monday.

Remittances increased by 37% year over year, compared to $2.95 billion recorded in the same month last year. On a monthly basis, remittances were up 30%, compared to $3.12 billion in February.

Cumulatively, with an inflow of $28 billion, workers’ remittances increased by 33.2% during Jul-Mar, FY25 compared to $21.04 billion received during Jul-Mar, FY24.

Home remittances play a significant role in supporting the country’s external account, stimulating Pakistan’s economic activity as well as supplementing the disposable incomes of remittance-dependent households.

“Pakistan’s remittances have hit a record high, driven by growing confidence in the stability of the Pakistani Rupee due to a narrower gap between interbank and open market exchange rates,” Wagas Ghani, Deputy Head of Research at JS Global, told Business Recorder.

This stability is largely credited to stricter foreign exchange regulations, he added. “Additionally, a recent surge in immigration, particularly to Gulf countries, has boosted remittance inflows.”

However, experts warned that the inflow momentum may not be sustained in the coming months.

“The level is unlikely to be maintained and will normalize to around $3-3.2 billion,” Sana Tawfik, Head of Research at Arif Habib Limited said.

As a result of record inflows, Pakistan’s current account is expected to post a surplus of around $700-900 million in March, she said.

Breakdown of remittances

Overseas Pakistanis in Saudi Arabia remitted the largest amount in March 2025 as they sent $987.3 million during the month. The amount was up 33% on a monthly basis, and 40% higher than the $703.1 million sent by the expatriates in the same month of the previous year.

Inflows from the United Arab Emirates (UAE) rose by 28% on a monthly basis, from $657.1 million in February to $842.1 million in March. On a yearly basis, remittances jumped nearly 54%, as compared to $548.5 million reported in the same month last year.

Remittances from the United Kingdom amounted to $683.9 million during the month, up by 38% compared to $496.5 million in February 2025. YoY inflows from the UK improved by 48%.

Overseas Pakistanis in the US sent $419.5 million in March 2025, a MoM increase of 35%.

PM rejoices over record remittances

Prime Minister Shehbaz expressed delight over the record achievement.

“Remittances reaching a record level is a reflection of the confidence of overseas Pakistanis in government policies,” PM said.

“Overseas Pakistanis not only bring glory to the country and nation by working hard abroad but also benefit the country’s economy with remittances,” read the statement released by the Prime Minister’s Office (PMO).

The government is committed to providing all facilities to overseas Pakistanis, the prime minister added.