Workers’ remittances rise to $4bn in March, up by 37%

April 14, 2025 (MLN): Pakistan’s workers’ remittances reached $4.05 billion in March 2025, up by a notable 37% YoY surge compared to $2.95bn in the same period last year, according to data released by the State Bank of Pakistan (SBP) today. 

On a sequential basis, the remittances surged by 30% compared to $3.12bn in February 2025. 

This surge is attributed to Eid festivities, improved use of formal banking channels, and rising economic activity in the Gulf region, where a majority of Pakistan’s remittances originate.

Cumulatively, with an inflow of $28bn, workers’ remittances increased by 17.5% during Jul-March, FY25, compared to $23bn received during Jul-March FY24.

Remittances inflows during March 2025 were mainly sourced from Saudi Arabia ($987.3 million), United Arab Emirates ($842.1 million), United Kingdom ($683.9 million) and the United States of America ($419.5 million).

Following this record surge in remittances, the central bank has raised its full-year remittance forecast to $38bn for FY25, up from an earlier estimate of $36bn, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Monday.

Speaking at the inauguration of Financial Literacy Week in Karachi, Ahmad said the SBP’s foreign exchange reserves—currently under pressure due to recent debt repayments—are projected to climb to $14bn by the end of June.

This compares with a previous target of $13bn. Pakistan is also expected to receive $4-5bn from multilateral lenders and other external sources before the close of the fiscal year.

“These remittance levels will likely deliver a sizeable current account surplus—potentially the strongest external position the country has recorded in two decades,” Ahmad said.

Despite a $2 billion drawdown in FX reserves in recent months, the governor expressed confidence in the country’s external financing outlook, underpinned by resilient remittances and improved economic sentiment.

Monthly imports have rebounded to $5.7bn, reflecting an uptick in domestic activity.

The SBP now forecasts real GDP growth at 3% for FY25, though a lower-than-expected agricultural output has led to a downward revision from earlier projections.

On inflation, Jameel Ahmad cautioned that the recent low reading of 0.7% in March is unlikely to persist, with upward pressure expected in the coming months.

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