2025.04.1407:39:36UTC+00Pakistan Remittances Hit Record High

In March 2025, Pakistan witnessed a significant surge in remittances, reaching a historic $4.1 billion, marking a 37% increase compared to the previous year. This growth indicates robust economic recovery facilitated by the International Monetary Fund's support. Major contributors were Saudi Arabia ($987 million), the UAE ($842 million), the UK ($684 million), and the US ($420 million). The substantial rise in remittances mirrors the restored confidence in Pakistan's economy, following its stabilization with IMF loans which helped avert a default in 2022. In light of these developments, the central bank has adjusted its remittance forecast for the fiscal year 2025 to $38 billion, up from the previous projection of $36 billion, and anticipates foreign exchange reserves to climb to $14 billion by June. Efforts to curb informal currency trading and reduced demand for the dollar have contributed to stabilizing the rupee, which has depreciated only 0.85% over the past year. Moreover, Pakistan has reported a current account surplus for the current fiscal year. From July to March of FY25, total remittances have increased by 33%, reaching $28 billion, a significant rise from the $21 billion recorded during the same period last year.