Pakistan worker remittances rise 11% in April to $3.54 billion

Pakistan’s remittances rose 11% in April from a year earlier, driven by higher inflows from overseas Pakistanis, according to data released by the State Bank of Pakistan on Monday.

Remittances stood at USD 3.539 billion in April, compared with USD 3.177 billion in the same month last year.

However, inflows declined from March, when remittances reached USD 3.831 billion. Analysts attributed the monthly drop to seasonal factors, saying overseas Pakistanis typically send higher amounts ahead of Eid for family support and charitable giving, including zakat.

Despite the decline from March, analysts described April’s remittance figure as strong, noting that inflows remained above the USD 3.5 billion mark.

One analyst said that if remittances maintain a similar pace over the remaining two months of the fiscal year, total inflows could reach about USD 40.8 billion by the end of FY25.

Mohammed Waqas Ghani, head of research at HS Global, said Pakistan’s external account outlook remains fragile as FY26 approaches.

“With crude oil prices elevated and import momentum likely to persist, the current account faces material pressure that domestic production cannot offset,” Ghani said.

He said remittances have shifted from being a supporting buffer to becoming an essential stabilizer for the economy.

“Should inflows weaken, particularly from the GCC region, where concentration risk is acute, the external account could slide into deficit again,” he said.

Ghani added that Pakistan’s foreign exchange reserve target has already been revised downward by USD 1 billion, increasing reliance on external financing.

“The margin for error is thin,” he said.During the first 10 months of the current fiscal year, remittances increased 8% to USD 33.86 billion, compared with USD 31.207 billion in the corresponding period last year, according to central bank data.

In FY24, Pakistan recorded remittances of about USD 38.3 billion, marking a 26.6% increase from the previous fiscal year.