Remittances Surge by 27.9% to $2.8 billion in April 2024

Remittances Surge by 27.9% to $2.8 billion in April 2024

Karachi, May 10, 2024 – Pakistan has witnessed a significant surge in workers’ remittances, with inflows climbing by 27.9% to $2.8 billion in April 2024 compared to the same month last year, according to the latest data released by the State Bank of Pakistan (SBP).

This substantial increase reflects a growing trend seen over the current fiscal year. From July 2023 to April 2024, cumulative remittances amounted to $23.8 billion, marking a 3.5% rise from the $23 billion recorded during the same period in the previous fiscal year.

April’s robust performance was primarily driven by contributions from key labor-exporting countries. Saudi Arabia led with net inflows of $712 million, followed by the United Arab Emirates, which sent $542.3 million. The United Kingdom and the United States also made significant contributions, with net inflows of $403.2 million and $329.2 million, respectively.

Economic experts attribute this rise in remittances to various factors including better economic conditions in host countries, more aggressive savings by expatriates amid global economic uncertainties, and festive-related transfers as Pakistani workers sent more money home in preparation for Eid celebrations.

The increase in remittances has been a boon for Pakistan’s economy, providing much-needed foreign exchange to help stabilize the national currency and improve the country’s balance of payments. The SBP has been actively working on policies to facilitate easier and more cost-effective channels for sending money back home, which has encouraged more remittances through official banking channels.

Local businesses and households are direct beneficiaries of this increase in remittances. Families of expatriates often rely on these funds for day-to-day consumption, healthcare, education, and savings. On a larger scale, the inflow of foreign currency helps to stabilize the Pakistani rupee and contributes to the economic health of the country.

The government is also planning further initiatives aimed at enhancing the benefits for overseas Pakistanis, hoping to sustain and possibly increase the flow of remittances into the country. As Pakistan continues to navigate economic challenges, the vital role of remittances in maintaining financial stability becomes increasingly apparent.