Remittances defy PTI boycott call, hit record $4.1bn in March

KARACHI: Remittances from Pakistani workers employed abroad hit the highest level for a single month in March, the central bank said on Monday, mostly thanks to the holy month of Ramazan and the Eidul Fitr festival, during which expats typically send extra money to families back home.

The amount of money sent home by those living overseas rose 37 per cent to $4.1 billion in the last month. Remittances increased by 29.8 per cent month-on-month. These inflows increased 33.2 per cent to $28 billion in the nine months of the current fiscal year.

State Bank of Pakistan (SBP) Governor Jameel Ahmad announced that remittance inflows are expected to reach an all-time high of approximately $38 billion in FY25, up from $30.25 billion in the previous fiscal year.

Speaking at the Pakistan Stock Exchange (PSX), he credited this growth to the government’s and SBP’s efforts to promote formal channels for inflows and the effective functioning of the domestic foreign exchange market.

Ahmad revealed that Pakistan anticipates receiving $4 to $5 billion in additional foreign exchange inflows before June 30, which would push the country’s forex reserves beyond $14 billion. He projected the current account to remain in surplus for FY25.

On external debt obligations, Ahmad noted that of the $26 billion due in FY25, $16 billion is expected to be rolled over or refinanced, leaving $10 billion in net repayments. Of this amount, $8 billion has already been paid.

Reflecting on recent economic trends, the SBP chief highlighted Pakistan’s successful transition from a phase of macroeconomic instability — marked by high inflation, depleting reserves, and default fears — to a more stable macroeconomic environment. He cited improved inflation figures, a current account surplus, rebuilt FX reserves, and stronger debt indicators as signs of an economic turnaround.

“With a sound macroeconomic foundation and renewed investor confidence, Pakistan now stands at a critical juncture to achieve broad-based and inclusive prosperity,” he said. Ahmad credited the hard-won macroeconomic stability to a series of tough policy decisions and stressed the importance of shifting focus toward sustainable growth.

He stressed the need to enhance productivity and boost exports, stating that export-led growth is essential for innovation, competitiveness, and attracting foreign investment. Calling for a unified national effort, Ahmad urged stakeholders to adopt long-term strategies that would ensure consistent growth and resilience. He underlined the need to address structural imbalances to avoid recurring economic crises and stagnation.

Reaffirming the SBP’s commitment to fostering a resilient and inclusive financial system, the governor stressed the importance of a supportive regulatory framework as the backbone of economic progress.

He also highlighted the role of financial literacy in achieving true financial inclusion, announcing the SBP’s Pakistan Financial Literacy Week from April 14 to 18. The initiative aims to engage diverse societal groups across the country to raise awareness and understanding of financial services.

Ahmad reiterated that financial inclusion is a top priority in SBP’s Strategic Vision 2028. Under the National Financial Inclusion Strategy (NFIS) 2024–28, the central bank aims to increase financial inclusion from 64pc to 75pc and reduce the gender gap in financial services from 34pc to 25pc by 2028.

The governor concluded by commending the PSX for its critical role in strengthening Pakistan’s capital market. He underscored the exchange’s importance in enabling businesses to raise capital and offering attractive returns to investors.

Awais Ashraf, the director of research at AKD Securities Limited, said remittances generally see an uptick during Ramazan, as overseas Pakistanis send funds to fulfil religious obligations such as Zakat and Fitrana.

“However, this year’s inflows have exceeded the expected $3.4 billion mark, partly due to an incentive scheme introduced by the State Bank of Pakistan in October last year, aimed at encouraging both home remittances and telegraphic transfers,” Ashraf said.

“Additionally, the emigration of over 1.5 million individuals since January 2023 has contributed to the sustained growth in remittances. Stricter FATF regulations and travel restrictions from the UAE and Saudi Arabia have also played a significant role in channelling more funds through formal channels,” he added.

Ashraf expects record-high remittance inflows and a narrowing trade deficit driven by recovering exports and reduced imports to help the country post a current account surplus of approximately $1 billion in March.

“Remittances are projected to ease in April before gaining momentum again in May and June, ahead of Eidul Azha,” he said.

Separately, Prime Minister Shehbaz Sharif Monday expressed his deep appreciation for overseas Pakistanis after the country recorded its highest-ever monthly remittances, crossing the $4 billion mark for the first time in history.

In a statement issued by the Prime Minister’s Office, he said the record $4.1 billion received in March 2025 reflected the overseas Pakistanis’ growing confidence in the government’s economic policies. He also thanked Pakistani expatriates for their unwavering support and commitment to strengthening the national economy.

“This historic surge in remittances is a clear expression of trust by our hardworking compatriots abroad,” the prime minister said. “The entire nation is proud of the dedication, contribution, and patriotism of overseas Pakistanis, who are a true asset to the country.”

The PM noted that the milestone was achieved during the ongoing Overseas Pakistanis Convention in Islamabad, which he said further signifies the strong bond between the government and the diaspora community.

PM Shehbaz reaffirmed his government’s commitment to facilitating overseas Pakistanis and ensuring that their contributions are valued and supported through dedicated services and policies.

“Our government is determined to provide all possible facilities to our fellow Pakistanis abroad. Their tireless efforts bring pride to the nation and vital strength to our economy,” he said.

Deputy Prime Minister Ishaq Dar addressed the media in London, highlighting the vital role overseas Pakistanis play in the country’s economy.

He confirmed that the government was in close contact with Iranian authorities concerning a recent incident.

National Assembly Speaker Sardar Ayaz Sadiq also reaffirmed Parliament’s collective resolve on Monday to address the challenges, faced by overseas Pakistanis, stressing that both the government and opposition remain united on the matter.

Speaking at the inaugural Overseas Pakistanis Convention, he said every member of the National Assembly, regardless of political party, fully supported the cause of the overseas community.

“Our fellow Pakistanis living abroad are the true ambassadors of our country,” he said. “Your support and partnership are crucial for building a better future for everyone.” He described overseas Pakistanis as the backbone of the nation, playing a key role in connecting Pakistan with the world. “Your actions and words shape how the world sees our country,” he added.

The speaker appreciated the Overseas Pakistanis Foundation for launching a new initiative to address the challenges faced by expatriates. He urged overseas Pakistanis to share their concerns so the government could respond with effective solutions. “Whether it’s through business, education, or promoting Pakistan’s image abroad, your contributions are significant,” he said.

Recalling his recent meetings with global dignitaries including the Speaker of Saudi Arabia and elected officials from the United States, he noted that many praised the achievements of Pakistanis living overseas.

“When international leaders speak highly of our citizens abroad, it makes us proud. It reflects the hard work and integrity of our people,” he added.

“The purpose of this convention is to listen to your voices. The National Assembly belongs to you as much as it does to us,” he said.

“Although dual nationals are currently not allowed to contest elections, this issue needs fresh discussion in the parliament.” He stressed the importance of recognising those who send large amounts of money back home. “You send more remittances than the country earns through exports. If we honour top exporters, why not top remitters?” he added.

He supported the idea of giving top remitters the honorary status of “roaming ambassadors”. Ayaz Sadiq also stressed the importance of using formal remittance channels and ending the use of informal systems like hundi. “Money sent through legal means strengthens the economy, increases tax collection, and brings transparency. Those using official channels should not face unnecessary scrutiny or extra taxes,” he said.

He acknowledged the difficulties overseas that Pakistanis face at embassies, particularly in countries like the UAE, Saudi Arabia, and Italy. “People who send money home should be treated with the same respect at embassies as ministers and MNAs. Why can’t we offer them that dignity?” he asked.

Federal Minister for Overseas Pakistanis and Human Resource Development (OP&HRD) Chaudhry Salik Hussain said the government was committed to resolving issues of overseas Pakistanis. Addressing at the convention, he warmly welcomed overseas Pakistani participants, terming them state guests.

He said the government passed a special bill for overseas Pakistanis, and now that had become a law in Punjab as well, which would benefit the overseas Pakistanis. Now special courts would be formed for overseas Pakistanis, which would give a decision within 90 days, and overseas Pakistanis would not have to come to Pakistan for every appearance.

Minister of State for Overseas Pakistanis Aun Chaudhry praised overseas Pakistanis as “Overseas Heroes of Pakistan” and outlined the government’s strategy to attract investments through confidence-building measures and policy reforms at the upcoming convention.

PMLN Senator and Chairman Senate Standing Committee on Housing Nasir Butt said “overseas Pakistanis have rejected call of PTI leadership and also buried their anti-state narrative” by sending record remittances.

“Under the leadership of Nawaz Sharif, the PMLN is fulfilling all promises made with overseas Pakistanis,” he added.

Pakistan’s Ambassador to Kingdom of Saudi Arabia (KSA) Ahmed Farooq said there were more than 5.5 million Pakistanis residing in the Gulf Cooperation Council (GCC) region, who were not only contributing to the local economy but also serving as a vital backbone for Pakistan.

Addressing the Overseas Pakistanis Convention on Monday, he said that overseas Pakistanis were playing a very important role in the country’s economic stability.

Pakistan’s Ambassador to Italy Ali Javed said Pakistanis living in Italy had sent more than one billion dollars in foreign exchange to Pakistan, which was a major contribution to the country’s economy. He expressed these views while addressing the Overseas Pakistanis’ Convention here on Monday.

High Commissioner of Pakistan to Malaysia Syed Ahsan Raza Shah said Malaysia was emerging as a key destination for Pakistani youth. Speaking at the Overseas Pakistanis Convention 2025, he termed the convention, a landmark event that was being held with regards to overseas Pakistani diaspora.

The delegates from across the globe on Monday gathered here at Jinnah Convention Centre for the inaugural of Overseas Pakistanis Convention 2025, termed the event a timely initiative and expressed hope that it would help address long-standing issues faced by overseas communities.