Remittances surge 37% YoY; SBP now expects $38 billion in total inflows for FY25
KARACHI – In a record-breaking development, Pakistan received an all-time high of $4.1 billion in workers’ remittances during March 2025, according to State Bank of Pakistan (SBP) Governor Jameel Ahmad. The milestone marks the first time monthly inflows have surpassed the $4-billion mark in the country’s history.
Revised Forecast: $38 Billion in Remittances for FY25
While speaking at the Pakistan Stock Exchange (PSX) to kick off Financial Literacy Week, Governor Ahmad also revealed that the SBP has upgraded its remittance forecast for FY25 from $36 billion to $38 billion, reflecting strong overseas inflows and improved global confidence in Pakistan’s economy.
According to SBP data released on Monday, March 2025 remittances rose 37% compared to $2.95 billion in March 2024 and surged 30% from $3.12 billion in February 2025.
Current Account and Forex Reserves Outlook Remain Strong
Governor Ahmad expressed optimism about the country’s external account position, predicting a sustained current account surplus throughout FY25. “This is the best performance on the external front in two decades,” he emphasized.
The SBP chief also revised up the foreign exchange reserves target to $14 billion by June 2025, up from the earlier estimate of $13 billion. As of now, forex reserves stand at $10.6 billion, despite recent debt repayments.
Total foreign reserves (SBP + commercial banks) have risen by $173 million, now standing at $15.75 billion, bolstering Pakistan’s financial stability.
External Inflows and Economic Activity Improving
Governor Ahmad projected $4–5 billion in additional external financing by June 2025, including disbursements from global financial institutions. He dismissed concerns about import restrictions, noting that monthly imports have climbed to $5.7 billion, indicating recovery in trade and industrial activity.
“Those who think there are still import restrictions or slow economic activity should take a closer look at the data,” Ahmad remarked.
FY25 Economic Growth and Inflation Projections
SBP now forecasts GDP growth at 3% for FY25, a slight downgrade from earlier expectations of 4.2% due to a slowdown in agricultural output, which had surged 8% in the previous fiscal year.
On inflation, the governor cautioned that after hitting a 60-year low of 0.7% in March 2025, consumer prices are expected to rise in the coming months.
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