Pakistan sees surge in April remittances amid improved global conditions

Pakistan recorded $3.2 billion in workers’ remittances in April 2025, marking a 13.1% increase compared with the same period last year, according to official data released Friday.

Cumulatively, remittance inflows have reached $31.2 billion during the first 10 months of fiscal year 2025, representing a 30.9% jump from the $23.9 billion received during the corresponding period in FY24.

The majority of inflows in April came from Saudi Arabia ($725.4 million), the United Arab Emirates ($657.6 million), the United Kingdom ($535.3 million), and the United States ($302.4 million). Last month, overseas Pakistanis sent home a record $4.05 billion, surpassing the $4 billion mark for the first time.

Analysts attribute the surge in remittances to improving economic conditions in key sending countries, coupled with declining domestic inflation and rising real incomes. The number of registered overseas workers also appears to be increasing, further driving remittance flows.

Pakistan’s macroeconomic outlook is showing early signs of stabilization, supported by monetary easing and reforms backed by the International Monetary Fund.

Inflation has fallen below 0.5%, while the State Bank has slashed its policy rate to 11%. The IMF’s $7 billion Extended Fund Facility has helped bolster fiscal stability, while record remittances and a current account surplus have strengthened foreign reserves, which the central bank expects to rise to $14 billion.