In a major economic boost, Pakistan received a record-breaking $4.1 billion in workers’ remittances during March 2025, according to State Bank of Pakistan (SBP) Governor Jameel Ahmad. This marks the highest monthly inflow of remittances in the country’s history and represents a 37% increase compared to March 2024, when the figure stood at $2.95 billion.
Speaking at the Pakistan Stock Exchange to kick off Financial Literacy Week, Ahmad shared that the central bank has revised its full-year remittance forecast for FY2025 from $36 billion to $38 billion, reflecting continued strength in overseas inflows. On a month-to-month basis, remittances jumped 30% from February’s $3.12 billion.
“This is the best performance on Pakistan’s external account in the last 20 years,” Ahmad said, expressing optimism that the current account will remain in surplus for the rest of the fiscal year.
Ahmad also updated projections for the country’s foreign exchange reserves, expecting them to reach $14 billion by the end of June 2025—up from the earlier forecast of $13 billion. Despite recent debt repayments that reduced SBP-held reserves to $10.6 billion, he said Pakistan is likely to receive $4–5 billion in external financing by June, including funds from international financial institutions.
Forex reserves rose by $173 million recently, reaching $15.75 billion overall.
Highlighting signs of economic recovery, Ahmad noted that monthly imports have increased to $5.7 billion, countering concerns that import restrictions were stalling economic activity. “Those who believe the economy is stagnant should look at the data,” he said.
The SBP governor also projected 3% GDP growth for FY2025. He noted that growth could have reached 4.2% if agricultural output had remained as strong as last year, when it posted an impressive 8% increase.
However, he warned that inflation is expected to rise again after hitting a six-decade low of 0.7% in March 2025, signaling a shift in the trend moving forward.
Overall, the record surge in remittances, rising imports, and expected foreign inflows suggest that Pakistan’s economy may be turning a corner in FY2025.
