Islamabad, Apr 3, 2025: Remittances to Pakistan have experienced a significant surge, with March 2025 expected to break records, potentially exceeding $3.5 billion, a 15% increase from February.
This spike is attributed to higher inflows during Ramazan, providing crucial relief to the government by easing external debt pressures and bolstering the exchange rate.
According to Zafar Paracha, the general secretary of the Exchange Companies Association of Pakistan (ECAP), about $450 million was sold to banks in March, a substantial rise compared to February and March 2024.
The total remittances for March 2025 are expected to surpass the $3.11 billion recorded in February and the $2.95 billion from March 2024.
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The growth trend in remittances to Pakistan is not only monthly but also year-on-year, with Pakistan receiving $23.96 billion from July to February in FY25, marking a 32.5% increase from the same period in FY24.
The government initially targeted $35 billion in remittances for FY25, but experts suggest the figure could reach up to $36 billion, surpassing expectations. The UAE and Saudi Arabia have been key contributors to this rise.
Inflows from the UAE jumping by 56% to $4.85 billion, and Saudi Arabia providing $5.89 billion, a 34.6% increase. Financial experts believe the recent visit of Prime Minister Shehbaz Sharif to Saudi Arabia may have led to discussions on further visa relaxations for Pakistani workers, potentially boosting remittance inflows from the region.
Despite the positive trends in remittances to Pakistan continues to face high youth unemployment, with joblessness standing at around 22%, and a sluggish GDP growth rate.
This situation underscores the growing reliance on overseas employment, particularly as the country struggles with job creation prospects.
