Pakistan received Highest Remittance inflows ever for March 2025

Pakistan received US 4.1 billion dollars remittances for the month of March 2025, and it is the highest remittance inflows for Pakistan ever. The increase in remittances is due to a couple of factors. The month of March remittance is the highest remittance Pakistan has ever received, and it is safe to say that it is almost double the amount of Pakistan's remittance figures during early 2024, when Pakistan was only receiving remittance inflows of US 2 billion dollars above.  

The State Bank of Pakistan has revised its prediction for remittances, and they are now expecting that remittance inflow figures for FY 2025 will reach US $38 billion. Moreover, Saudi Arabia was the major contributor, and the second most significant contribution was the UAE, where both of these countries send record-high remittances to Pakistan. Moreover, due to the increase in remittances, Pakistan was able to secure the IMF's 1st review's staff-level agreement.  

If overseas did not contribute, then Pakistan would easily have been struggling to convince the IMF for the 1st review's successful completion, and Pakistan would not be able to convince the IMF about a staff-level agreement unless Pakistan finds or arranges alternative external financing. The surge in remittances is due to Ramadan and Eid. Many people send more remittances to Pakistan for Zakat and charity purposes.  

Moreover, it is expected the remittances for the month of May will be the same or better; however, it is expected that May 2025 remittance figures will be USD 3.2-3.5 billion. The increase is due to Pakistan's commitment to the FATF and the IMF, as Pakistan has made much-needed reforms to forex exchange, provided subsidies to banks to increase remittances, waved off taxes, and much more. It is hoped that one day Pakistan will not be required to have another IMF program, and Pakistan will be self-sufficient enough to decide its own budget, taxes, and finances.