Karachi, October 9, 2024 – Pakistan has experienced a remarkable 39% surge in workers’ remittances during the first quarter (July – September) of the fiscal year 2024-25, according to data released by the State Bank of Pakistan (SBP) on Wednesday. The remittance inflows soared to $8.79 billion, a significant increase from $6.33 billion in the corresponding quarter of the previous fiscal year.
Mohammad Sohail, CEO of Topline Securities Limited, lauded this surge, emphasizing that robust remittance inflows are pivotal for Pakistan in sustaining the stability of the rupee and mitigating the current account deficit. This influx of foreign currency not only strengthens the economy but also alleviates pressure on the balance of payments.
A particularly noteworthy aspect of this remittance growth is the staggering 67% increase in inflows from the United Arab Emirates (UAE), which reached $1.71 billion during the first quarter of the current fiscal year, up from $1.02 billion in the same period last year. This surge underscores the UAE’s significance as a key source of remittances for Pakistan, reflecting the strong ties between the two countries.
In addition to the UAE, remittances from the United Kingdom and Saudi Arabia also demonstrated significant growth, rising by 41.6% and 42%, respectively, during the period under review. The inflows from the United States recorded a more modest yet commendable increase of 17%. These figures indicate a broad-based recovery in remittance flows from various regions, bolstering Pakistan’s foreign exchange reserves.
In September 2024 alone, Pakistan received $2.85 billion in workers’ remittances, slightly surpassing the $2.84 billion recorded in the previous month, August 2024. More impressively, this figure reflects a substantial increase compared to the $2.21 billion remitted in September 2023. This consistent growth trajectory is a beacon of hope for the country’s economy amid global uncertainties.
Analysts predict that the continued rise in remittances could play a crucial role in stabilizing the economy, providing much-needed liquidity and support for local businesses. The government and financial institutions are expected to leverage this positive trend to enhance economic policies aimed at further boosting remittance inflows.
As Pakistan navigates the complexities of its economic landscape, the substantial increase in workers’ remittances offers a promising avenue for resilience and recovery, fostering optimism among stakeholders in the nation’s economic future.