Remittances projected to surge by $3.5 billion in March

Pakistan is on track to receive a record high $3.5 billion in remittances in March 2025. According to credible reports, the surge in exports translates into a month-on-month remittance growth of 15 percent, spelling great news for the domestic economy.

The sudden spike in remittance inflows can be attributed to Ramzan as per currency exchanges and financial analysts. While remittances help augment the disposal income of households and increase their purchasing power, the government stands to benefit too.

Reports reveal that the federal government has obtained breathing space as the burden of debt obligations denominated in foreign currencies has decreased slightly. This is because the unusually large remittance inflows have lent incredible support to the rupee, allowing for the exchange rate to remain stable.

In a statement, general secretary of the Exchange Companies Association of Pakistan (ECAP) Zafar Paracha disclosed that ECAP sold a staggering $450 million to banks in March. Contrasting this figure to the corresponding time period last year, Zafar Paracha commented on the improvement in inflows and chalked them up to Ramzan.

For reference, remittances stood at just $2.95 billion and $2.5 billion in March 2024 and 2023 respectively. On a year-on-year basis, the improvement seems truly meteoric however, comparing March 2025’s remittance projection of $3.5 billion to $3.11 billion in February, reveals that the month-on-month growth rate is more conservative.

Previously, the federal government was targeting $35 billion in remittances for fiscal year (FY) 2024-25. However, experts claim that actual inflows during the current fiscal year may very well outstrip the initial target.

Independent analysts and currency dealers believe that remittance inflows during FY 2024-25 could exceed $36 billion. According to reports, inflows have been witnessing robust growth ‘every month’ and have grown by 32.5 percent during the first eight months of FY 2024-25.

This marks a new record for inflows and this trend could continue into the future. This is because Pakistanis have migrated out of the country in throngs given the country’s poor economic condition.

Data from reports suggests that Pakistan raked in almost $24 billion from July 2024 to February 2025 marking an increase of approximately $6 billion dollars compared to the same time period from the last fiscal year.

According to Zafar Paracha, the target has "already been achieved" and that remittance inflows are bound to break records. As usual, the countries responsible for the largest remittance flows during the first eight months of FY 2024-25 were reportedly Saudi Arabia ($5.89 billion) and UAE ($4.85 billion).