In fiscal year 2023-24, Pakistan recorded a robust inflow of overseas workers’ remittances, totaling $30.3 billion, marking a significant 10.7% increase compared to the previous fiscal year’s $27.3 billion, according to data released by the State Bank of Pakistan (SBP) on Tuesday.
The monthly breakdown for June 2024 revealed remittances of $3.16 billion, showing a marginal 3% decrease from May 2024’s $3.24 billion. However, on a year-on-year basis, June 2024 saw a substantial 44% surge from $2.2 billion in June of the previous year.
Remittances continue to play a pivotal role in bolstering Pakistan’s external account and stimulating economic activity, while also supplementing the incomes of households dependent on these funds.
The World Bank’s recent report, ‘Migration and Development Brief 40’, projected further growth in remittances for Pakistan. It forecasted a 7% recovery to $28 billion in calendar year 2024, followed by a 4% increase to approximately $30 billion in 2025.
Key contributors to June 2024’s remittance inflow included Saudi Arabia, with expatriates sending $808.6 million, reflecting a 1% monthly decline but a notable 57% increase from the previous year. Remittances from the UAE amounted to $654.3 million, down 2% from May but up by 101% year-on-year. The United Kingdom and the United States also contributed $487.4 million and $322.1 million, respectively, in June 2024.
Despite minor monthly fluctuations, the overall trend highlights the resilience and significant contribution of remittances towards Pakistan’s economic stability and growth.
