Inflow of overseas workers’ remittances clocked in at $2.943 billion in August, a massive 40.5% higher on a year-on-year (YoY) basis when compared with $2.095 billion in the same month of the previous year, showed data released on Monday by the State Bank of Pakistan (SBP).

On month-on-month (MoM) basis, the inflow in August was 2% lower when compared to $2.994 billion in July 2024.

During 2MFY25, remittances went up by 44% YoY to $5.9 billion as compared to $4.1 billion in 2MFY24.

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.

Breakdown of remittances

Overseas Pakistanis in Saudi Arabia remitted the largest amount in August 2024 as they sent $713.1 million during the month. The amount declined by 6.2% on a monthly basis, but was 45.2% up than the $491.1 million sent by the expatriates in the same month of the previous year.

Inflows from the United Arab Emirates (UAE) also declined 12% on a monthly basis, from $611.2 million in July to $538.4 million in August. However, on a yearly basis, remittances improved by 74.6%, as compared to $308.4 million reported in same month last year.

Pakistan’s remittance inflow at $30.3bn in FY24, up 10.7%

Remittances from the United Kingdom amounted to $474.8 million during the month, an increase of 7% compared to $443.5 million in July 2024.

Meanwhile, remittances from the European Union improved 7.1% MoM as they amounted to $375.8 million in August 2024.

Overseas Pakistanis in the US sent $322.4 million in August 2024, a MoM increase of 7.4%.