Inflow of overseas workers’ remittances clocked in at $30.3 billion in fiscal year 2023-24 (FY24), 10.7% higher on a year-on-year basis when compared to $27.3 billion in FY23, showed data released on Tuesday by the State Bank of Pakistan (SBP).
Remittance inflows in Pakistan clocked in at $3.16 billion in June 2024 alone, 3% lower on a month-on-month basis when compared to $3.24 billion in May 2024.
On a yearly basis, the monthly inflow registered a significant increase of 44% as compared to $2.2 billion remittances registered in the same month of the previous year, data showed.
Home remittances play a significant role in supporting the country’s external account, stimulating Pakistan’s economic activity as well as supplementing disposable incomes of remittance-dependent households.
Last month, the World Bank in its report ‘Migration and Development Brief 40’ expected remittances in Pakistan to recover and grow at about 7% to reach $28 billion in (calendar year) 2024 and increase another 4% to about $30 billion in 2025.
As per the report, Pakistan emerged among the top five recipient countries for remittances in 2023.
Breakdown of remittances
Overseas Pakistanis in Saudi Arabia remitted the largest amount in June 2024 as they sent $808.6 million during the month. The amount declined by 1% on a monthly basis, but was 57% up than the $516.1 million sent by the expatriates in the same month of the previous year.
Inflows from the United Arab Emirates (UAE) also declined 2% on a monthly basis, from $668.4 million in May to $654.3 million in June. However, on a yearly basis, remittances improved by 101%, as compared to $324.8 million reported in same month last year.
Remittances from the United Kingdom amounted to $487.4 million during the month, an increase of 3% compared to $473 million in May 2024.
Meanwhile, remittances from the European Union declined nearly 3% month-on-month as they amounted to $330 million in June 2024. Overseas Pakistanis in the US sent $322.1 million in June 2024, a month-on-month decrease of 10%.
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