Foreign remittances of Pakistan increased 24% year-on-year (YoY) in October 2024, reaching $3.052 billion compared to $2.463 billion in October 2023, according to the report shared by State Bank of Pakistan (SBP).
The rise marked a 7% month-on-month (MoM) increase from September’s $2.86 billion, pointing to a steady inflow of funds from overseas workers. Additionally, the SBP expects a further $500 million from the Asian Development Bank (ADB) this week, which could provide a crucial boost to Pakistan’s foreign reserves.
For the first four months of the fiscal year 2024-25, total remittances have reached $11.8 billion, representing a notable 35% increase over the $8.8 billion recorded during the same period last year. This consistent growth highlights the role of remittances in stabilizing Pakistan’s economy amid ongoing financial challenges.
Country-wise portions of remittances
A significant portion of October’s remittances originated from Gulf Cooperation Council (GCC) countries, which remain a primary source of Pakistan’s foreign inflows. Following are the major portions of remittances received from other countries:
- Inflows from Saudi Arabia reached $766.7 million, registering a 12% MoM increase and a 24% rise from October 2023.
- The United Arab Emirates also contributed significantly, with remittances climbing by 10% MoM to $620.9 million, marking a 31% YoY increase.
- Inflows from the United Kingdom were recorded at $429.5 million, showing a slight 1% increase from the previous month and a 30% YoY jump.
- Remittances from the European Union saw a minor month-on-month decrease, totaling $359.1 million.
- Inflows from the United States increased by 8%, reaching $299.3 million.
These figures underscore the resilience of worker inflows, driven by factors such as a stable exchange rate, the narrowing gap between open market and inter-bank rates, the expansion of digital payment options, and a growing number of Pakistani workers seeking employment abroad, especially in GCC countries.
The SBP’s proactive measures to encourage formal remittance channels, coupled with advancements in digital payment infrastructure, have been pivotal in this growth. The anticipated ADB inflow, along with the robust remittance figures, could further strengthen Pakistan’s foreign reserves, potentially improving economic stability and providing a buffer against external economic pressures.