Record Remittance Inflow Bolsters Pakistan's Economic Stability

Pakistan's monthly remittances hit a record USD 4.1 billion in March, marking a 37% year-on-year increase. This inflow supports the economy, with foreign reserves set to surpass USD 14 billion by June. Despite economic recovery signs, GDP growth for FY25 is forecasted at 3%, trailing earlier projections.

In a significant boost to its dollar reserves, Pakistan recorded a historic inflow of USD 4.1 billion in remittances for March, according to the State Bank of Pakistan (SBP). This achievement set a new monthly record, surpassing previous year-on-year figures by 37% compared to March of the previous year.

SBP chief Jameel Ahmad, speaking at the Pakistan Stock Exchange, highlighted that remittances in February 2025 reached USD 3.12 billion, marking a 3.8% increase from January 2025. He stated that this financial lifeline illustrates growing trust in the government's economic policies.

With these inflows, foreign exchange reserves are expected to exceed USD 14 billion by June, suggesting a cushioning effect against foreign debt obligations, which total USD 26 billion for FY25. Prime Minister Shehbaz Sharif acknowledged the role of overseas Pakistanis in this financial uptick, attributing it to their trust in government policies.

(With inputs from agencies.)