Inflow of overseas workers’ remittances clocked in at $2.2 billion in September 2023, 5.3% higher on a month-on-month basis when compared to $2.1 billion in August 2023, showed data released on Tuesday by the State Bank of Pakistan (SBP).
On a yearly basis, however, the monthly inflow of remittances registered a decline of 11% as it stood at $2.5 billion 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.
Meanwhile, workers’ remittances inflow of $6.33 billion has been recorded during July-September FY24, a massive decline of 20% YoY or $1.56 billion, as compared to $7.89 billion registered in 3MFY23.
Breakdown of remittances
Overseas Pakistanis in Saudi Arabia remitted the largest amount in September 2023 as they sent $538.2 million during the month. The amount improved by 10% on a monthly basis, but was nearly 15% lower than the $632.7 million sent by the expatriates in the same month of the previous year.
Inflows from the United Arab Emirates (UAE) saw a significant jump of 30% on a monthly basis, from $308.4 million in August to $399.8 million in September. However, on a yearly basis, the remittances declined by 16%, as compared to $474.8 million reported in same month last year.
Remittances from the United Kingdom amounted to $311.1 million during the month, a decline of 6% compared to $330 million in August 2023.
Meanwhile, remittances from the European Union improved 4% year-on-year as they amounted to $269.3 million in September 2023. Overseas Pakistanis in the US sent $263.4 million in September 2023, a year-on-year decline of 6%.