Karachi, August 9, 2024 – Pakistan witnessed a significant surge in workers’ remittances, with inflows rising by 48% Year on Year (YoY) in July 2024, according to data released by the State Bank of Pakistan (SBP) on Friday.
The remittances reached approximately $3 billion, compared to $2.03 billion in the same month last year, marking a robust start to the fiscal year 2024-25.
The substantial increase in remittances is seen as a positive indicator of the confidence that overseas Pakistanis have in the economic measures implemented by the government in recent months. The significant inflow is crucial for bolstering the country’s foreign exchange reserves and providing stability to the economy amid ongoing financial challenges.
Despite the impressive YoY growth, the remittances in July 2024 were slightly lower than the $3.16 billion received in June 2024. However, the consistent inflows reflect the strong commitment of the Pakistani diaspora to support their homeland.
The breakdown of remittances by source countries reveals that a considerable portion of the inflows came from key economies. The United States contributed $300 million, while the United Kingdom accounted for $444 million. Saudi Arabia, a traditional stronghold for remittances, led the pack with $761 million. The United Arab Emirates followed with $611 million, and other GCC countries collectively sent $289 million.
The rise in remittances is particularly significant as it highlights the resilience of overseas Pakistanis in continuing to support the country despite global economic uncertainties. The increased inflows are expected to provide much-needed relief to Pakistan’s economy, which has been grappling with challenges such as rising inflation, a depreciating currency, and a widening trade deficit.
Economists and financial analysts have welcomed the surge in remittances, noting that these inflows are crucial for maintaining the country’s balance of payments and ensuring economic stability. The government is expected to continue implementing policies aimed at facilitating remittances and encouraging the Pakistani diaspora to send money through formal channels.
As Pakistan embarks on the new fiscal year, the sustained growth in remittances will be a key factor in shaping the country’s economic outlook. The government and the SBP will likely keep a close eye on these inflows, as they play a vital role in strengthening Pakistan’s financial position and supporting its development goals.
