KARACHI: The country has received highest-ever quarterly workers remittance inflows of $8.8 billion during the first quarter of the fiscal year 2025 (FY25), primarily attributed to a stable exchange rate. The State Bank of Pakistan (SBP) reported on Wednesday that total home remittance inflows grew by 39 percent in FY25’s first quarter. Remittances during July to September reaching $8.8 billion, compared to $6.3 billion during the same period in FY24, marking an increase of $2.5 billion.

Analysts attributed this surge to the stability of the PKR exchange rate and the narrowing gap between open market and interbank rates. Additionally, an increase in the number of workers relocating abroad has significantly contributed to this growth.“These stronger home remittance inflows will help Pakistan in maintaining PKR stability and containing the current account deficit”, they added.

During the first quarter of this fiscal year, a notable increase was witnessed in the inflows from Saudi Arabia, UAE, UK and US.

Saudi Arabia is the largest contributor in the home remittances with a share of 24.5 percent. With a growth of 42 percent, overall, $21.55 billion workers’ remittances were received from Saudi Arabia in the first quarter of this fiscal year compared to $1.52 billion in corresponding period of last fiscal year.

UAE is the second leading contributor and surged by 67 percent. Overseas Pakistanis from the USA sent remittances worth $1.71 billion in July-Sep of FY25 up from $1.02 billion in the same period of FY24. During the period under review, with an increase of 42 and 17 percent, inflows of home remittances from the UK and USA rose to $1.34 billion and $897 million respectively.

Pakistan’s worker remittances in Sep 2024 clocked in at $2.85 billion, up 29 percent YoY compared to $2.2 billion in Sep 2023 and the highest amount ever received in the month of Sep.

However, on a month-on-month basis, inflows in Sep 2024 are slightly lower than Aug 2024, in which $2.94 billion remittances were arrived. Remittance inflows during September 2024 were mainly sourced from Saudi Arabia worth $681.3 million, United Arab Emirates $560.3 million, United Kingdom $423.6 million and United States of America $274.9 million.

Copyright Business Recorder, 2024