Workers’ remittances rise 29.1% YoY to $2.9 billion in November

Pakistan recorded $2.9 billion in workers’ remittances during November 2024, reflecting a 29.1% year-on-year (YoY) growth compared to $2.3 billion in November 2023, according to the State Bank of Pakistan (SBP). 

Despite fluctuations in monthly inflows—November’s $2.9 billion marked a slight decline from October’s $3.1 billion—the upward trend in remittances underscores their critical role in Pakistan’s foreign exchange earnings.

Cumulatively, remittances for the first five months of FY25 (July–November) amounted to $14.8 billion, a 33.6% increase from $11.1 billion during the same period last year.

Analysts attributed the growth to a shift toward official channels, driven by a narrowing gap between interbank and open-market exchange rates and stricter foreign exchange regulations. 

SBP’s threefold increase in monetary incentives for exchange companies also contributed, offering up to Rs4 per incremental US dollar of remittances.

The primary sources of remittances in November 2024 were Saudi Arabia ($729.2 million), the UAE ($619.4 million), the UK ($409.9 million), and the USA ($288.2 million). 

The UAE witnessed a 50% YoY increase, with Dubai contributing 77% of the total inflow from the region.

The finance minister recently projected remittances for FY25 to reach an all-time high of $35 billion, compared to $30.25 billion in FY24. 

The SBP’s crackdown on unofficial channels, such as Hawala and Hundi networks, has also strengthened formal remittance inflows.