Inflow of overseas workers’ remittances clocked in at nearly $3 billion in July, a massive 48% higher on a year-on-year basis when compared with $2.03 billion in the same month of the previous year, showed data released on Friday by the State Bank of Pakistan (SBP).

Remittance inflows in Pakistan clocked in at $2.995 billion in July 2024, 5% lower on a month-on-month basis when compared to $3.158 billion in June 2024.

The amount is the “highest ever for the month of July,” said brokerage house Topline Securities.

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.

Back in June, 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.

However, Pakistan collected $30.3 billion in fiscal year 2023-24 (FY24), 10.7% higher on a year-on-year basis.

Breakdown of remittances

Overseas Pakistanis in Saudi Arabia remitted the largest amount in July 2024 as they sent $761 million during the month. The amount declined by 6% on a monthly basis, but was 56% up than the $487 million sent by the expatriates in the same month of the previous year.

Inflows from the United Arab Emirates (UAE) also declined 7% on a monthly basis, from $654 million in June to $611 million in July. However, on a yearly basis, remittances improved by 94%, as compared to $315 million reported in same month last year.

Remittances from the United Kingdom amounted to $443 million during the month, a decrease of 9% compared to $487 million in June 2024.

Meanwhile, remittances from the European Union improved nearly 6% month-on-month as they amounted to $351 million in July 2024. Overseas Pakistanis in the US sent $300 million in July 2024, a month-on-month decrease of 7%.