KARACHI: Workers’ remittances recorded an impressive growth of 48 percent in the first month of this fiscal year (FY25).

The State Bank of Pakistan (SBP) on Friday reported that Pakistan has received home remittances inflows amounting to $3 billion in July 2024 compared to $2.029 billion in July 2023, depicting an increase of $966 million.

Analysts said that during the last quarter of FY24, workers’ remittances witnessed about $3 billion monthly inflows on stable exchange rate and the same trend is continued in the first month of this fiscal year.

With stable exchange rate, overseas Pakistanis are sending inflows to their families and relatives in the country through legal channels and secondly the rising number of Pakistanis migration to other countries for job purpose has increased the home remittances inflows, they added.

Higher home remittance is a good sign for the country, which is facing a balance of payment crisis for the past two years and striving for foreign inflows to build the foreign exchange and ensure the timely external debt servicing, they further said.

During July 2024, remittances inflows were mainly sourced from Saudi Arabia, United Arab Emirates (UAE), United Kingdom (UK) and United States of America (USA).

Saudi Arabia is the largest contributor with 25 percent share in the total home remittances inflows. Inflows from Saudi Arabia rose by 56 percent to $761 million in July 2024 as against $487 million arrived in July 2023. However, inflows in July 2024 are some 6 percent less than June 2024, in which $808 million were received on account of home remittances.

Workers’ remittances from UAE posted an increase of 94 percent as overseas Pakistanis sent $611 million in July 2024 up from $315 million in July 2023.

The UK ranked third with an amount of $446 million, up by 45 percent in July 2024. An amount of $300 million was received from the USA in the first month of this fiscal year compared to $241 million in the same period of last fiscal year.

Copyright Business Recorder, 2024