Daily Times

Pakistan’s remittances from overseas workers have recorded a remarkable 40% year-on-year (YoY) increase in August 2024, reaching a total of USD 2.94 billion, according to data from Arif Habib Limited, sourced from the State Bank of Pakistan (SBP). This marks a significant rise from the USD 2.09 billion received in August 2023.

Saudi Arabia Leads the Surge
The highest remittances came from Saudi Arabia, with inflows amounting to USD 713 million in August 2024, up by 45% compared to USD 491 million in August 2023. Saudi Arabia remains a critical remittance source, accounting for nearly a quarter of the total inflows.

UAE and UK Follow
The UAE also showed a significant rise in remittances, contributing USD 538 million, reflecting a massive 75% YoY growth. The United Kingdom followed with remittances of USD 475 million, recording a 44% YoY increase.

MoM Decline
Despite the YoY gains, there was a minor month-on-month (MoM) dip of 2% compared to the USD 2.99 billion recorded in July 2024. This drop reflects usual monthly fluctuations but does not take away from the overall strong trend seen in the first two months of the fiscal year.

Strong Fiscal Performance
In the first two months of FY25, Pakistan received a total of USD 5.94 billion in workers’ remittances, a 44% increase from the USD 4.12 billion collected during the same period in FY24.

Remittances by Region
– The European Union saw inflows of USD 376 million, growing by 29% YoY.
– The USA contributed USD 322 million, up 23% YoY.
– Other regions collectively added USD 518 million, marking a 40% YoY growth.

This surge in remittances provides a much-needed boost to Pakistan’s economy, helping alleviate pressure on its foreign exchange reserves and supporting the country’s balance of payments. The government and central bank are expected to further incentivize overseas Pakistanis to continue remitting funds through formal banking channels.