Karachi, November 8, 2024 – Workers’ remittances into Pakistan have shown a notable 35% growth year-on-year (YoY) in the first four months (July-October) of fiscal year 2024-25, according to data released by the State Bank of Pakistan (SBP) on Friday.
The SBP report indicates that remittances inflows surged to $11.85 billion, compared to $8.79 billion in the corresponding period of the previous fiscal year, underscoring the crucial role remittances play in supporting Pakistan’s economy.
Financial analysts attribute the rise in remittances to a combination of government policies aimed at facilitating and incentivizing remittances from expatriate Pakistanis. These policies, focused on ensuring easier, secure transfer options and providing incentives to overseas workers, have strengthened inflows. Additionally, the relatively stable political and economic environment in Pakistan has encouraged expatriates to send funds, assured that their remittances will positively impact their families and contribute to economic growth.
In October 2024, Pakistan recorded a 24% YoY increase in remittances, reaching $3.05 billion, up from $2.46 billion in October 2023. On a Month-on-Month (MoM) basis, remittances saw a 6.64% rise, increasing from $2.86 billion in September 2024. The strong inflows are expected to support Pakistan’s foreign exchange reserves, offering some cushion for the country’s external financing needs.
The data shows that the majority of remittances originated from key overseas employment hubs. Saudi Arabia, Pakistan’s largest source of remittances, accounted for $766.7 million in October, followed closely by the United Arab Emirates with $620.9 million. The United Kingdom and the United States also contributed significantly, with inflows of $429.5 million and $299.3 million, respectively. Together, these countries make up the lion’s share of remittances, reflecting the concentration of Pakistani workers in these regions.
Remittances are a vital source of foreign exchange for Pakistan, and this latest surge could ease some of the economic pressures the country has faced in recent years. Experts emphasize that continued policy support for remittances will be essential for sustaining these inflows, especially as global economic conditions fluctuate.
With remittances showing robust growth, analysts are hopeful that this trend will continue to bolster Pakistan’s economic stability.
