Overseas workers’ remittances rise by 26% YoY to $2.4 billion

WEB DESK: In January 2024, the influx of remittances from overseas workers reached $2.4 billion, marking a 1 per cent increase compared to the $2.38 billion recorded in December 2023.

The latest data, disclosed by the State Bank of Pakistan (SBP) on Monday, also revealed a notable year-on-year surge of 26 per cent, with the monthly remittance flow standing at $1.9 billion during the same period in the previous year.

The monthly flow of remittances plays a pivotal role in fortifying Pakistan’s external account, fostering economic activity within the country, and augmenting the disposable incomes of households dependent on remittances.

Despite the January upswing, the cumulative workers’ remittances for July-January FY24 totaled $15.83 billion, reflecting a 3 per cent year-on-year decrease or a reduction of $386 million compared to the $16.32 billion reported in 7MFY23.

Breaking down the figures, overseas Pakistanis in Saudi Arabia maintained their lead in January 2024, remitting the highest amount at $587.3 million. This marked a 2 per cent increase from the previous month and a substantial 43 per cent surge compared to the same period in the previous year, when expatriates sent $409.4 million.

In contrast, remittances from the United Arab Emirates (UAE) experienced a marginal month-on-month decline, dropping from $419.2 million in December to $407.6 million in January. However, on a yearly basis, these remittances witnessed a significant upswing of nearly 51 per cent, surpassing the $269.5 million reported in the same month the previous year.

Remittances from the United Kingdom amounted to $362.1 million in January 2024, indicating a 2 per cent decrease compared to the $368 million recorded in December 2023.

Meanwhile, remittances from the European Union demonstrated positive trends, with a 20 per cent year-on-year increase and a 2 per cent monthly improvement, totaling $290.1 million in January 2024.

Overseas Pakistanis in the United States sent $283.4 million in January 2024, marking a substantial year-on-year increase of 32 per cent compared to the $214.4 million reported in the same month the previous year.

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