KARACHI: Overseas Pakistanis sent home a record sum of $4.1 billion last month, causing an upward revision in the targets for remittances and foreign exchange reserves, besides boosting hopes for a higher growth rate.

At the gong ceremony at the Pakistan Stock Exchange (PSX) on Monday, State Bank Governor Jameel Ahmed said that record remittances had led to areset of the FY25 target from $35bn to $38bn.

He said $4.1bn in remittances reflectedthe government and the SBP`s efforts to `incentivise the sending of money via formal channels`.

Although the governor did not pinpoint the cause of rise in remittances, it is believed that hefty sums sent duringRamazan accounted for 10-15 per cent of the uptick. Hence, financial experts think that April may not see the same inflows.

According to Mr Ahmed, total remittances for FY25 are expected to be around $38 billion, against the previous target of $35bn.

Data issued by the State Bank shows inflows have already increased by $7bn during the July-March period year-on-year. The country received a totalof $28.029bn during the first nine months of the current fiscal, while the inflow for the same period during FY24 amounted to $21.037bn.

In FY24 the total remittances were $30.25bn. If we add the $7bn higher remittances to last year`s total, the figure reaches $37bn not far from the revised target of $38bn.

PM hails performance The development was hailed by PM Shehbaz Sharif, who expressed satisfaction over the increase in remittances sent by overseas Pakistanis last month, terming it `a reflection of their trust in the government`s policies`.

In a statement, he said the surge of 37.4 per cent in remittances reflected the `dedication, passion, and trust of overseas Pakistanis in the country`s economy`.

Calling them a valuable asset, the prime minister said overseas Pakistanis had strengthened the country`s economy through their hard work.

`The nation is proud of hardworking overseas Pakistanis and the government is committed to providing them with all necessary facilities,` PM Shehbaz said.

Growthrate The governor projected economic growth at three per cent for FY25, against the World Bank`s estimate of 2.6pc.

`It (GDP) would have grown to 4.2 per cent in the year had agricultural outputremained robust at the previous year`s level of eight per cent,` he said.

The central bank chief was hopeful of an increase in foreign exchange reserves target from 13bn to $14bn by end of FY25.

`The economy has successfully transitioned from instability to a stable mode, boosting the stakeholders` confidence in the economy.

`Pakistan has seen off a period of macroeconomic instability characterised by high inflation, low reserves and fears of default and entered a period of stable macroeconomic conditions and renewed confidence,` Jameel Ahmed said.

He pointed to significant improvements across multiple indicators, signalling a much-needed revival of economic growth. He said inflation had come down substantially, the external current account balance had turned into a Surplus, forex buffers have been rebuilt, and public debt indicators have improved considerably during the past couple of years.

`Now it is crucial to focus on sustain-able growth,` he said, pointing out that enhancing productivity and boosting exportsmustbecomecentraltoPakistan`s growth model. as `exports directly contribute to greater productivity, innovation and foreign investment`.

Mr Ahmad urged stakeholders to commit themselves to long-term strategies that ensure sustainable and inclusive growth. He underscored the need for reforms to address structural issues, avoid boom-bust cycles and stagnation.

The governor reaffirmed that enhancing financial inclusion remained a top strategic goal for the SBP.

The governor shared key initiatives under the National Financial Inclusion Strategy 2024-28, including efforts to increase financial inclusion from 64 per cent to 75 per cent by 2028, while reducing the gender gap in financial services from 34 per cent to 25 per cent by 2028.

Financial literacy PSX Chairperson Dr Shamshad Akhtar emphasised the transformativepower of financial education during her address.

`There is no doubt that literacy, particularly financial literacy, is critical for any society. Financial literacy serves as the bedrock for an inclusive economy.

`We must work together to build an ecosystem that enables meaningful impact. Educating people about financial products is a key to empowering them, especially youth and women, to take charge of their financial futures,` she said.

Reflecting on the PSX`s vision, MD & CEO Farrukh H. Sabzwari said Pakistan`s investor base remains below 400,000, indicaing that there is considerable room for growth.

`We are working closely with all stakeholders to educate the public on investment avenues and diversity in participation. With continued support, our aim is to expand the number of IPOs to 40 over the next three years,increasing market depth and investor confidence, he said.