Workers’ remittances to Pakistan surged to $3.1 billion in December 2024, reflecting a 29.3% year-on-year growth and a 5.6% increase from the previous month, according to the State Bank of Pakistan.
Cumulatively, remittances reached $17.8 billion during the first half (July-December) of FY25, marking a 32.8% increase compared to $13.4 billion received during the same period of FY24.
Pakistan’s efforts to curb illegal foreign-exchange trades are seen boosting the nation’s remittances to a record high this year. Finance Minister Muhammad Aurangzeb expects remittances to reach an all-time high of $35 billion this year from $30 billion last year.
A breakdown of the inflows shows that overseas workers in Saudi Arabia sent home the highest remittances in December 2024, amounting to $770.6 million. This marked a 6% increase compared to November and a 33% rise from $577.6 million in December 2023.
Remittances from the United Arab Emirates (UAE) grew by 2% month-on-month, reaching $631.5 million in December, up from $619.4 million in November. On a yearly basis, inflows from the UAE surged by 51% compared to $419.2 million in the same month last year.
The United Kingdom contributed $456.9 million in remittances during December, reflecting an 11% increase compared to $409.9 million in November. Year-on-year inflows from the UK rose by 24%.
Remittances from the European Union totaled $360.3 million in December, showing an 11% month-on-month increase from $323.5 million in November.
In contrast, remittances from the United States slightly declined by 1% on a monthly basis, with $284.3 million sent in December 2024.
Prime Minister Muhammad Shehbaz Sharif felicitated the nation on a record increase in foreign remittances in December 2024, saying that the claims of those who had been chanting to halt the country’s economy had proven to be baseless.
On Thursday, the State Bank of Pakistan (SBP) Governor, Jameel Ahmad, expressed his optimism that remittance inflows are expected to surpass $35 billion in the current fiscal year.
Higher remittances may augment the nation’s foreign exchange reserves and help reduce a major economic vulnerability that pushed the beleaguered nation to the brink of default last year. Pakistan has been implementing tough economic measures under the International Monetary Fund’s guidance and succeeded in securing a $7 billion loan from the multilateral agency in September.
