Pakistan Remittances Surge by 31% MoM in March 2024

Pakistan Remittances Surge by 31% MoM in March 2024

Karachi, April 8, 2024 – Pakistan has witnessed a significant surge of 31 percent in remittances on a month-on-month (MoM) basis in March 2024.

According to data released by the State Bank of Pakistan (SBP) on Monday, overseas Pakistani workers sent $2.954 billion in the month of March 2024, compared with $2.25 billion in the previous month, February 2024.

Analysts have attributed this surge in remittance inflows to several factors. Firstly, the month of March 2024 had more working days compared to February, potentially facilitating more transactions. Additionally, a notable portion of the increased remittance inflow is attributed to the approach of Ramadan. During this holy month, overseas Pakistanis traditionally send money to their families and loved ones to support them during the period of fasting and celebration of Eid-ul-Fitr.

Meanwhile, the inflow of remittances grew by 16.43 percent on a year-on-year (YoY) basis in March 2024, reaching $2.954 billion compared to $2.537 billion in the same month of the previous year. Analysts attribute this YoY surge to various factors, including political stability within the country and recent governmental and central bank initiatives to combat currency smuggling and the hoarding of foreign currency.

In the first nine months (July – March) of the current fiscal year 2023-24, remittances witnessed a modest increase of one percent, reaching $21.036 billion compared to $20.845 billion in the corresponding period of the previous fiscal year.

The steady growth in remittances is considered crucial for Pakistan’s economy, as these inflows contribute significantly to foreign exchange reserves and help stabilize the country’s external accounts. The surge in remittances not only reflects the resilience of the Pakistani diaspora but also indicates a level of trust and confidence in the country’s economic stability and policies.

Remittances play a vital role in supporting millions of households across Pakistan, providing a lifeline for families to meet their basic needs, invest in education, healthcare, and other essential services, and contribute to overall economic development.

The government and relevant authorities continue to emphasize the importance of leveraging remittance inflows for sustainable development, including initiatives to facilitate investment channels for remittance recipients, promote financial inclusion, and enhance the overall efficiency and transparency of remittance transactions.

Despite global economic uncertainties and challenges, the robust performance of remittances in March 2024 underscores the resilience of Pakistan’s diaspora community and their unwavering commitment to supporting their homeland’s economic growth and development.

As the country moves forward, policymakers are expected to continue implementing measures aimed at further enhancing the flow of remittances and maximizing their positive impact on Pakistan’s economy and society. With concerted efforts, Pakistan aims to harness the full potential of remittances as a catalyst for sustainable development and prosperity.