FinMin says Pakistan expects remittances to hit $43bn

ISLAMABAD (Web Desk) - Pakistan expects its remittance inflows to rise to $43 billion this fiscal year as it plans to launch the first Panda bond, the country’s finance minister Muhammad Aurangzeb said on Thursday, amid improving macroeconomic indicators.

The development comes as Pakistan navigates a tricky path to economic stability under a $7 billion International Monetary Fund (IMF) program since averting a default in 2023.

Last year, the country’s remittance inflows increased to $38 billion in 2024, compared to $27 billion in 2023, amid efforts to formalize over $400 billion economy by curbing currency smuggling and widening tax base.

“We expect in this fiscal year the remittances to go up to about anywhere between $41-43 billion and that’s a direct function of this macroeconomic stability and a stable currency rate,” Aurangzeb said at a business summit in Peshawar.

The minister shared that Islamabad made a $500 million repayment for Euro bond, while the country is “well positioned” for its next payment of $1.3 billion in April.

“So now we have to go back into the international capital markets, and so God willing, before the year [2025] is out, we expect we’ll have the inaugural Panda bond issued,” he said.

A panda bond is a Chinese yuan-denominated debt instrument issued in China’s onshore bond market by foreign governments, multilateral institutions or companies. It allows overseas borrowers to access China’s vast pool of investors while diversifying funding sources.

“All these positive outcomes of economic stability, this is how it translates into getting the economy moving forward,” Aurangzeb said.