Workers’ Remittances Hit Record $4.1 Billion in March 2025

In a significant economic milestone, workers’ remittances to Pakistan crossed the $4 billion mark for the first time, reaching $4.1 billion in March 2025. This surge highlights the growing contribution of the overseas Pakistani community amid economic migration and improved confidence in the country’s financial stability.

Overseas Pakistanis Drive Record Growth in Remittances

The State Bank of Pakistan (SBP) confirmed the sharp increase, reporting a 37.3% year-on-year and 29.8% month-on-month rise in remittance inflows for March.

During the first nine months of FY25 (July-March), remittances grew to $28.0 billion, marking a robust 33.2% increase compared to the $21 billion sent during the same period last year.

Key Remittance Sources: Saudi Arabia, UAE, UK & USA Lead the Way

A large share of the March inflows came from:

• Saudi Arabia: $987.3 million

• United Arab Emirates: $842.1 million

• United Kingdom: $683.9 million

• United States: $419.5 million

This highlights the critical role of the overseas Pakistani workforce, especially in Gulf countries, in supporting Pakistan’s economy.

Economic Migration and Exchange Rate Stability Behind the Surge

Analysts credit this increase to multiple factors, including:

• The seasonal Ramazan/Eid effect on family support.

• Growing confidence in the Pakistani Rupee, fueled by a narrowed gap between the interbank and open market exchange rates.

• Stricter foreign exchange regulations ensuring smoother currency flows through formal channels.

• Increased economic migration in response to local economic pressures.

Pakistan’s Macroeconomic Revival: Optimism for Growth

Speaking at the Pakistan Stock Exchange (PSX), SBP Governor Jameel Ahmad celebrated this milestone as evidence of broader economic recovery.

He highlighted that Pakistan has moved from an era of macroeconomic instability — marked by high inflation and low foreign exchange reserves — to a phase of renewed confidence and stability.

Vision for Sustainable Growth and Financial Inclusion

Looking ahead, the SBP governor emphasized:

• The importance of boosting exports and enhancing productivity for long-term economic health.

• The need for financial literacy and inclusion, especially as the SBP rolls out Pakistan Financial Literacy Week (April 14-18).

• Ambitious targets under the National Financial Inclusion Strategy (NFIS) 2024-28 to increase financial access from 64% to 75% and narrow the gender gap in financial services by 2028.

Conclusion

The historic surge in remittances offers a powerful reminder of the strength and resilience of the overseas Pakistani community. As Pakistan lays the groundwork for sustainable economic growth, the combination of steady remittance inflows, sound policy decisions, and a focus on financial literacy could help shape a more prosperous future.