Pakistan Receives $30.25 Billion in Workers’ Remittances in FY24

Pakistan Receives $30.25 Billion in Workers’ Remittances in FY24

Karachi, July 9, 2024 – Pakistan received $30.25 billion in workers’ remittances during the fiscal year 2023-24, according to a report by the State Bank of Pakistan (SBP) released on Tuesday. This represents an 11 percent increase compared to the $27.33 billion received in the preceding fiscal year.

Analysts attribute this substantial growth to improved economic and political conditions in Pakistan, which have encouraged overseas Pakistanis to send their savings back home. The positive economic outlook and stable political environment have boosted the confidence of expatriates, leading to higher remittance inflows.

On a year-on-year (YoY) basis, the inflows of remittances in June 2024 recorded a remarkable 32 percent growth, reaching $3.16 billion compared to $2.19 billion in the same month last year. This surge in June highlights the increasing trust of overseas Pakistanis in the country’s economic stability and future prospects.

However, on a month-on-month (MoM) basis, the inflow of remittances declined by 2.5 percent from $3.24 billion in May 2024. Analysts explain that the significant inflows in May were primarily due to funds sent by overseas Pakistanis for Eid celebrations and Hajj-related expenses. The slight dip in June is seen as a natural adjustment following the seasonal peak in May.

The consistent rise in remittances over the fiscal year has played a crucial role in strengthening Pakistan’s foreign exchange reserves and supporting the balance of payments. The SBP’s report emphasizes the importance of remittances as a stable source of foreign currency inflows, which help mitigate the impact of trade deficits and external debt repayments.

Analysts also highlight the role of the government’s initiatives in facilitating remittance transfers. Efforts such as the Pakistan Remittance Initiative (PRI) and improved banking channels have made it easier and more attractive for overseas Pakistanis to send money home. These measures, coupled with the country’s economic recovery, have contributed to the steady increase in remittance inflows.

The future outlook for remittances remains positive, with analysts expecting continued growth in the coming fiscal year. The ongoing recovery in the global economy, particularly in countries with significant Pakistani diaspora, is likely to sustain the upward trend in remittances. Moreover, the stable political environment and pro-economic policies in Pakistan are expected to further enhance the confidence of overseas Pakistanis.

In summary, the $30.25 billion in workers’ remittances received in FY24 marks a significant milestone for Pakistan, reflecting the trust and confidence of the expatriate community in the country’s economic stability. This robust inflow of remittances is a testament to the resilience of Pakistan’s economy and the vital role of overseas Pakistanis in its growth.