SBP Raises Target as Remittances Surge in FY25

Overseas Pakistanis send record-breaking $4.05 billion in March, pushing SBP to raise remittance target for FY25.

In a major boost to Pakistan’s external finances, remittances from overseas Pakistanis soared past $4 billion in March 2025, the highest-ever recorded in a single month. According to data released by the State Bank of Pakistan (SBP), remittances surged 37% year-on-year, reaching $4.05 billion, compared to $2.95 billion in March 2024. This remarkable growth is largely attributed to stability in the foreign exchange market, improved financial transparency, and increased use of formal banking channels.

FY25 Remittance Momentum Builds

For the first nine months of FY25 (July–March), Pakistan has received a total of $28 billion in remittances, up 33% from the $21 billion received during the same period last fiscal year. The spike in inflows prompted the SBP to revise its full-year remittance target from $36 billion to $38 billion.

To meet the new target, the country will need to average around $3.3 billion per month in the remaining three months of FY25, an ambitious but now realistic expectation, given recent performance.

Gulf Nations Drive Inflows

The UAE and Saudi Arabia continue to be the dominant sources of remittances, collectively accounting for 46% of the total inflows. Combined remittances from the two countries rose 44% year-on-year, reaching $12.59 billion, compared to $8.75 billion during the same period last year.

Breakdown for March 2025:

• Saudi Arabia: $987 million (↑ 40%)
• UAE: $842 million (↑ 54%)
• UK: $684 million (↑ 48%)
• USA: $419 million (↑ 13%)

Positive Impact on Reserves

The historic inflow has also enabled the SBP to surpass its foreign exchange reserves target of $13 billion. Current estimates project reserves reaching $14 billion by end-June, strengthening Pakistan’s position in global financial markets and improving its external credit outlook.