Pakistan records $2.4bn remittances in December, up 5.4% MoM, 13.4% YoY

Pakistan received $2.4 billion in remittances from overseas workers in December 2023, marking a 5.4% month-on-month and a 13.4% year-on-year increase, according to the latest data from the State Bank of Pakistan (SBP).

As per SBP data, workers' remittances were recorded at $2.25 billion in November and $2.1 billion in December 2022. 

However, despite the rise in December, remittances declined by 6.8% year-on-year to $13.43 billion in the first half of the fiscal year 2023-24 (July-December), compared to $14.42 billion in the same period last year. 

A country-wise breakdown indicates that Saudi Arabia remained the largest source of remittances, sending $577.6 million in December, up 6% month-on-month and 9% year-on-year.

The UAE followed with $419.2 million, a 2% monthly and 27% yearly increase. The UK sent $368 million, a 7.5% monthly and 19% yearly increase. The EU contributed $284.9 million, a 6% monthly and 19% yearly increase. The US also showed an 8.5% yearly increase, sending $263.9 million in December.

The World Bank has projected that remittances to Pakistan will drop to $24 billion in 2023 and further to below $22 billion in 2024, due to the economic crisis and the loss of public confidence in the formal channels of money transfer.