Remittances surge by 26% to $2.4bn in January

The State Bank of Pakistan (SBP) released data showing a 26.2 percent year-on-year increase in workers' remittances, which soared to $2.4 billion in January from $1.9 billion in the same month of the previous year.

The monthly comparison further highlights a modest growth, with remittances climbing by 0.64 percent month-on-month from $2.38 billion in December.

The primary contributors to this increase were Pakistani expatriates in Saudi Arabia, who sent back $587.27 million.

This was followed by remittances from the United Arab Emirates (UAE) amounting to $407.61 million, the United Kingdom at $362.14 million, European Union countries contributing $290.06 million, and the United States with $283.39 million.

However, despite the positive growth in January, a broader view of the current fiscal year presents a more nuanced picture.

Over the first seven months of fiscal year 2024 (7MFY24), total remittances amounted to $15.83 billion, a slight decrease of 2.98 percent compared to $16.32 billion received during the same period in the previous fiscal year (7MFY23).

The fluctuations in remittance flows is a critical factor for Pakistan's economic health, affecting foreign exchange reserves and balancing external payments.