KARACHI: Remittances sent by overseas Pakistanis from different countries crossed over $ 30 billion by the end of the financial year 2023-2024.
According to the statistics released by the State Bank of Pakistan, the inflow of $30.3 billion in workers’ remittances increased by 10.7 percent during FY24 compared to the inflow of $27.3 billion recorded in FY23. In FY22, the remittances stood higher at $31.2 billion.
Inflows from Saudi Arabia recorded the highest values, $7.2 billion, with 13.6 percent year-on-year growth. The UAE is followed by the UAE, with $5.5 billion in remittance inflows in FY24, showing 18.9 percent year-on-year growth.
Expatriate Pakistanis from the UK and the USA sent remittances of $4.5 billion and $3.5 billion with 11 percent or 11.5 percent growth.
The inflow of remittances also set the target estimated by the SBP in its recent reports.
Ibrahim Amin, Chairman of Dellsons Associates, a financial consulting firm, said that growth in remittance inflows is instrumental to Pakistan’s economy, as it plays a crucial role in bridging the country’s current account deficit.
He mentioned that Roshan Digital Accounts (RDA) played an important role in maintaining inflows through channels, in addition to the government incentives to banking institutions.
He outlined the importance of streamlining banking channels and introducing an App through collaborations with banks and technology providers to facilitate overseas Pakistanis in different countries, mainly in the GCC region.
The government, through embassies and consulates, should work to build the confidence of the labour class and semi-skilled workers by incentives to attract remittances through banking channels.
In terms of growth, during June 2024, remittances increased by 44.4 percent on a y/y basis to $3.2 billion. Remittances in May also stood at an all-time high of $3.2 billion. The high inflow of remittances in these two months was reported mainly due to Eid-ul-Adha, during which overseas people sent an extra amount than usual to perform their religious obligation of sacrifice.
Remittance inflows during June 2024 were mainly sourced from Saudi Arabia ($808.6 million), the United Arab Emirates ($654.3 million), the United Kingdom ($487.4 million), and the United States of America ($322.1 million), according to the SBP.