Pakistan’s remittance inflows are expected to surpass $3.5 billion in March, marking a 15% increase from February. This surge is largely attributed to increased remittances sent during Ramazan. Financial experts highlight that this rise has eased pressure on Pakistan’s external payments and helped stabilize the country’s exchange rate, providing much-needed relief to its economy.
General Secretary of the Exchange Companies Association of Pakistan (ECAP), reported that exchange companies sold around $450 million to banks in March. This represents a sharp increase from February and the same month last year. With over $3.5 billion expected for March, this is a significant jump from the $3.11 billion recorded in February and the $2.95 billion received in March 2024.
In the first eight months of FY25, Pakistan received $23.96 billion in remittances, a 32.5% increase compared to $18.08 billion during the same period in FY24. The government had initially set a target of $35 billion for the fiscal year. However, with the continued growth in remittance inflows, experts now expect the total to surpass $36 billion, exceeding expectations.
Remittance inflows from key countries also showed impressive growth. From July to February in FY25, remittances from the UAE increased by 56%, totaling $4.85 billion. Similarly, inflows from Saudi Arabia grew by 34.6%, reaching $5.89 billion during the same period. These consistent increases in remittances have provided crucial support to Pakistan’s economy, helping to ease some of the challenges posed by external financial pressures.