KARACHI: Remittances from overseas Pakistanis remained strong, with inflows increasing by 31 percent during the first 10 months of FY25, reported the State Bank of Pakistan (SBP) on Friday.

However, in April, remittances dropped by 21.5pc month-on-month. The record-high remittances in March were primarily attributed to higher Ramazan inflows for charity and Zakat disbursements.

According to the SBP data, the remittances increased by 31pc to $31.21 billion compared to $23.85bn in the sameperiod last fiscal year.

During the current fiscal year, remittances hit a record, which prompted the SBP to revise the target to $38bn from $35bn for FY25 compared to$30.25bn remittances received in FY24.

The remittances have significantly outpaced export proceeds. Financial experts believe that the government`s increasingreliance on remittances could put Pakistan in a difficult situation since the inflows are easy money without paying any returns to the remitters or overseas Pakistanis.The economy could be seriously harmed if obstacles or a decline in remittances occur.

Furthermore, the sluggish economic growth has compelled thousands of Pakistanis, particularly skilled workers from the IT sector, to seek employment abroad, with many moving to Dubai for a more business-friendly environment.

The SBP data showed that the remittances totalled $3.182bn in April compared to $4.053bn in March. However, inflows in April 2024 were $2.813bn.

`In terms of growth, remittances increased by 13.1pc in April year-onyear,` said the SBP.

Remittances inflows during April were mainly sourced from Saudi Arabia ($725.4m), the United Arab Emirates ($657.6m), United Kingdom ($535.3m) and the United States ($302.4m).

However, the inflowsfrom Saudi Arabia during July-April FY25 increased by 31.2pc to hit a record $7.6bn.

The growth in the inflows from the UAE surged 51pc to $6.362bn in 10MFY25 compared to $4.2bn in the corresponding period last year.

Remittances from the UK increased by 34pc to $4.779bn. Other significant inflows during JulyApril were $3.124bn from the US, $3.678bn from the EU, and $3.046bn from GCC countries, recording a rise of 9.7pc, 28.6pc and 19pe, respectively.

Bankers said the significance of remittances had risen considerably as the demand for dollars escalated amid ongoing tensions with India. `The State Bank has successfully managed the exchange rate thus far, however, in the event of a full-scale war, the exchange rate may undergo significant changes,` they feared.