KARACHI: The State Bank of Pakistan (SBP) announced that the country has received a record $28.07 billion in remittances from overseas Pakistanis during the current financial year. SBP Governor Jameel Ahmad made the announcement during a ceremony at the Pakistan Stock Exchange (PSX), highlighting the crucial role of remittances in stabilizing the economy.
He stated that remittances in the first nine months of the 2024-25 financial year were 33 percent higher compared to the same period last year. February 2025 alone saw a year-on-year increase of nearly 40 percent, with $3.12 billion received, followed by a record-breaking $4.1 billion in March.
According to SBP data, the largest contribution came from Saudi Arabia, with $987 million in March, followed by $842 million from the UAE, $684 million from the UK, and $419 million from the US.
Governor Ahmad noted that the government has been working towards achieving economic stability and is actively engaging with the corporate sector to help bridge financial gaps. Reflecting on the state of the economy in 2022, he emphasized the significant progress made since then.
One of the key achievements he mentioned was the drastic reduction in inflation. The Consumer Price Index (CPI) showed a historic decline to just 0.7 percent last month, compared to the peak of 38 percent in May 2023. In addition, foreign exchange reserves have surged to over $14 billion, and the exchange rate has shown steady improvement.
Despite the positive indicators, Governor Ahmad highlighted persistent challenges, particularly inflation and foreign debt. He also addressed the GDP outlook, stating that although economic activity has picked up, a weaker agricultural season may limit GDP growth to between 2.5 and 3 percent, as opposed to the earlier forecast of 4.2 percent.
He concluded by stressing the importance of collaboration with the corporate sector and affirmed that the central bank is working alongside the stock exchange to support long-term economic development.
