For the first 11 months of the fiscal year 2024 (11MFY24), foreign remittances reached an impressive US$27 billion, marking an 8% increase year-on-year.
May 2024 saw significant month-on-month growth in remittances from several key regions: a 23% increase from the UAE, a 17% rise from the UK, a 15% uptick from Saudi Arabia, and a 14% boost from EU countries.
These figures have exceeded expectations. Analysts had projected full-year remittances to reach US$28 billion, a target Pakistan is on track to surpass with US$27 billion already accumulated in 11MFY24. The International Monetary Fund (IMF) had also forecasted US$28 billion for FY24.
Given the current momentum, experts believe Pakistan could achieve total remittances of US$29.5 to US$30 billion for FY24, reflecting an 8-10% year-on-year growth. This surge is attributed not only to seasonal inflows related to Eid but also to a significant increase in the number of Pakistanis emigrating in the past two years. Between 2022 and 2023, an average of 850,000 Pakistanis moved abroad annually, compared to an average of 323,000 per year between 2017 and 2021.
Analysts suggest that this robust remittance growth is likely to continue, supported by the stability of the PKR/USD exchange rate and the potential initiation of a new IMF program. The sustained inflow of remittances is expected to bolster Pakistan’s economic stability and growth prospects in the coming months.
