PkRevenue.com – Pakistan has achieved a historic milestone by recording all-time high monthly remittances of $3.24 billion in May 2024, according to official data released on Friday by the State Bank of Pakistan (SBP).
This remarkable figure represents a significant 54.2 percent increase year-on-year (YoY) compared to $2.10 billion in May 2023.
The surge in remittances also reflects a 15.3 percent month-on-month (MoM) growth from $2.81 billion recorded in April 2024. The unprecedented inflows have been attributed to several factors, including the influx of funds for Eid celebrations and a stable currency environment.
Mohammad Sohail, CEO of Topline Securities, highlighted the significance of these figures. “Pakistan recorded all-time high monthly foreign remittances of $3.24 billion, marking a 54% YoY and 15% MoM increase in May 2024. This surge can be attributed to Eid inflows and currency stability. We anticipate that YoY growth in remittances will remain robust in the coming months, driven by expectations of a new IMF program,” he explained.
The cumulative inflows during the first eleven months of the fiscal year 2024-25 (July – May) have also shown substantial growth. The remittances for this period reached $27.10 billion, reflecting a 7.7 percent increase compared to $25.14 billion in the corresponding period of the previous fiscal year.
The consistent growth in remittances is a positive indicator for Pakistan’s economy, providing a much-needed boost to the country’s foreign exchange reserves. The strong remittance inflows are crucial for maintaining currency stability and supporting the balance of payments.
Eid festivities traditionally lead to a spike in remittances as overseas Pakistanis send money back home to support their families. This year’s increase has been particularly pronounced, thanks to the stable currency environment, which has encouraged more expatriates to transfer funds through formal channels.
The SBP’s data reflects the resilience of Pakistan’s overseas community and their continued support for the country’s economy. The government and financial institutions have been working to facilitate and incentivize remittances through official channels, ensuring that the funds contribute to the national economy.
Looking ahead, experts believe that the trend of increasing remittances will persist, especially with the anticipated stability brought by the new International Monetary Fund (IMF) program. This program is expected to reinforce economic stability and boost investor confidence, further encouraging the flow of remittances into the country.
As Pakistan navigates through its economic challenges, the record-breaking remittance figures for May 2024 stand as a testament to the enduring strength and commitment of the Pakistani diaspora worldwide.
