KARACHI/ISLAMABAD: Inflows of home remittances witnessed a significant 34 percent increase during the first five months of the current fiscal year (FY25), driven by a stable exchange rate and a marked rise in the number of migration of Pakistanis securing job opportunities abroad.
The State Bank of Pakistan (SBP) on Monday reported that Pakistan received cumulative workers’ remittances amounting to $14.766 billion during the July-November period of FY25, reflecting a substantial increase of $3.7 billion compared to $11.053 billion recorded in the same period of FY24.
Analysts attribute the healthy inflow of home remittances this fiscal year to a stable exchange rate, economic recovery spurred by the IMF program, and a significant increase in the number of Pakistanis migrating abroad for employment opportunities. This robust growth also highlights the critical role of overseas workers in bolstering the country’s foreign exchange reserves and supporting the country’s economy, they added.
According to the State Bank of Pakistan (SBP), Saudi Arabia remains the largest source of remittance inflows, contributing 25 percent to the total. Remittances from Saudi Arabia surged by an impressive 36 percent reaching $3.653 billion in the first five months of FY25, compared to $2.676 billion during the same period last fiscal year.
The UAE ranked second, with remittance inflows rose by 56 percent to $2.952 billion during July and November of FY25, up from $1.91 billion in the corresponding period of FY24.
The United Kingdom (UK) also recorded a significant increase, with remittances jumping 35 percent to $2.182 billion during the period under review.
Meanwhile, remittance inflows from the United States (US) grew by 13.5 percent, climbing to $1.489 billion in the first five months of FY25, up from $1.312 billion in the same period of the previous fiscal year
Monthly statistics also revealed that home remittances increased by 29 percent in November, 2024 on y/y basis. The country received remittances worth $ 2.915 billion in November 2024 up from $2.2 billion in November 2023.
However, workers’ remittances in November 2024 are lower than October 2024, in which $3.054 billion inflows arrived.
Remittance inflows during November, 2024 were mainly sourced from Saudi Arabia $729.2 million, United Arab Emirates $619.4 million, United Kingdom $409.9 million and United States of America $288.2 million.
Meanwhile, Prime Minister Shehbaz Sharif on Monday paid tribute to expatriate Pakistanis for the record increase in foreign remittances, acknowledging their contributions at a time when the country is passing through a decisive time.
The inflow of remittances from abroad amounted to $2.92 billion in November 2024, representing a 29 percent increase compared to the previous year, he said, adding the growth shows the confidence that overseas Pakistanis have in the government’s robust economic policies.
He stated that “compared to last year, foreign remittances during the initial five months of the current fiscal year have reached a record high of $14.8 billion, representing an increase of 33.6 percent from last year.” “This significant growth is commendable and is expected to have a positive impact on the overall economy of the country, for which, the credit goes to my economic team led by Muhammad Aurangzeb,” he added. The decrease in soaring inflation, the influx of foreign investment, and the overall economic stability can all be attributed to the diligent efforts of the economic team, he added.
Declaring the expatriate Pakistanis as pride of the country, he said they are serving as ambassadors for their country, adding the government is committed to making every effort to address the concerns, as they promote their country through their contributions across various fields worldwide.
Copyright Business Recorder, 2024
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