Overseas Pakistanis sent home a record $4.1 billion in remittances in March 2025, which is the highest monthly inflow on record for the South Asian country struggling to put its economic house in order.
The March figures show a continuing upward trend in foreign remittances, jumping by nearly 30%, up from $3.12 billion in February 2025.
State Bank Governor Jameel Ahmad said this week the massive infusion of money shored up foreign exchange reserves and increased liquidity of funds for importers.
Pakistan, despite its tremendous geostrategic location and wealth of natural resources, is in the midst of efforts to recover from stagnant growth and political instability. While remittances help improve the macroeconomic scenario, the country is reeling from effects of multiple challenges including weak governance, and the national economy is now expected to have a 3% GDP growth in contrast with 4.2% projections made earlier.
Islamabad’s foreign debt obligations for FY25 total around $26 billion, of which the government expects $16 billion to be rolled over or refinanced. This would help reduce the net repayment pressure.
The 2023 government data shows that more than 10.80 million Pakistanis have moved abroad over the years.
Of these, over 4.7 million, reside in the oil-rich Middle Eastern countries including Saudi Arabia and United Arab Emirates.
Around 1.6 million Pakistanis live in the United Kingdom, followed by the United States. In the U.S. Pakistani Americans live in major areas of New York City, Chicago, and New Jersey while Washington metro area has also a substantial diaspora population.
In Europe, Italy, Germany, Spain and Norway have also large Pakistani communities. Canada, which opened immigration to skilled workforce and professionals three decades ago, has also a growing population of Pakistani diaspora. (especially in Toronto).
The UN Department of Economic and Social Affairs ranks oversea, Pakistanis as thee the 6th largest diaspora in the world.
Data from July to December 2024 shows Pakistanis abroad sent more money back home than the country’s export earnings, with remittances totaling $17.645 billion while exports fetching $16.561 billion.
In all Pakistan exports during the fiscal year 2024 totaled $30.65 billion. The remittances Pakistan received during the 2024 fiscal year hit the highest annual figure of $34.1bn. This represented a 32 percent increase from the year 2023.
On Tuesday, Prime Minister Shehbaz Sharif applauded the significant role overseas Pakistanis play toward economic stability, and announced a package of incentives to encourage their participation in the nation’s development.
The package, unveiled at an overseas convention of Pakistani diaspora, includes addressing issues involving legal challenges for diaspora like illegal occupation of their properties, a 5% quota for overseas Pakistanis in federal universities, allocation of 3,000 admissions to medical colleges for children of overseas Pakistanis .
Sharif announced plans to build an international airport in Mirpur, the capital of Azad Jammu and Kashmir, responding to a long-standing demand of the diaspora. Besides, 15 civil awards would be given annually to overseas Pakistanis for excellence in their respective fields, beginning each year on August 14.
Pakistan’s political troubles exacerbated with the removal of former prime minister Imran Khan from office in 2023. He has been imprisoned for almost two years. His party, Pakistan Tehreek-e-Insaaf has accused the government and the military establishment of flouting court orders and the constitution in denying a fair legal process to Khan. The military refutes allegations of involvement in politics.
The current government, a coalition of Pakistan Muslim League (N) and Pakistan Peoples Party, also faces some nagging security challenges including insurgency in Balochistan, a resource-rich province in southwest Pakistan, whose Chinese-built Gwadar deep sea port connects South Asia, Central Asia and the Gulf countries.
The overseas summit in Islamabad is being showcased as expression of support for the current government’s policies. Imran Khan’s PTI has long been particularly popular among expatriate Pakistanis including Pakistani Americans.
Besides, Islamabad also has to walk a fine line in pushing forward its relations with the world’s largest economies, the United States and China, embroiled in an escalating trade war.
