Pakistan’s remittances see massive monthly decline

Pakistan’s economy received a significant boost from overseas remittances in April 2025, with the State Bank of Pakistan (SBP) reporting an inflow of $3.2 billion.

While the figure marks a 22% decline from March’s $4.1 billion, it still reflects a 13.1% year-on-year increase compared to April 2024’s $2.81 billion.

From July to April FY2025, cumulative remittances have reached $31.2 billion, marking a 31% rise over the $23.9 billion received during the same period last fiscal year. This consistent inflow plays a vital role in stabilizing Pakistan’s external account, boosting household incomes, and stimulating domestic economic activity.

Last month, SBP Governor Jameel Ahmad stated that the robust flow of remittances would keep the current account in surplus through the fiscal year.

“There will be a substantial surplus, and this is the best performance on the external account during the last two decades,” he remarked, underscoring the resilience of external finances.

Country-wise Remittance Overview for April 2025

• Saudi Arabia led the inflow sources, with Pakistani workers remitting $725.4 million, a 26% decrease from March, but 2% higher than the previous April’s figure.
• United Arab Emirates (UAE) contributed $657.6 million, down 22% month-on-month but up 21% from April 2024.
• From the United Kingdom, remittances stood at $535.3 million, showing a 22% MoM decline, but a notable 33% YoY increase.
• The United States saw a drop as well, with April inflows totaling $302.4 million, reflecting a 28% monthly fall.

Prime Minister Shehbaz Sharif welcomed the overall 31% surge in remittances over the first ten months of FY2025, acknowledging the crucial contribution of Pakistanis living abroad.

“The record increase in remittances reflects the patriotism of Overseas Pakistanis and their confidence in the country’s economic policies,” he said in a statement issued Friday.

The premier praised the diaspora for playing a central role in Pakistan’s economic development.