Overseas workers’ remittances surge to $2.4 billion in December 2023

WEB DESK: In a recent report, the State Bank of Pakistan (SBP) disclosed that the influx of overseas workers’ remittances reached an impressive $2.4 billion in December 2023.

This figure represents a substantial 5.4 per cent increase on a month-on-month basis, compared to the $2.25 billion recorded in November 2023.

Analysing the data on a yearly basis, the report highlighted a notable uptick of 13.4 per cent in the monthly inflow of remittances when compared to the same month of the previous year, standing at $2.1 billion.

The significance of home remittances was underscored, as they continue to play a pivotal role in supporting Pakistan’s external account, stimulating economic activity, and contributing to the disposable incomes of remittance-dependent households.

Despite the positive surge in December, the overall workers’ remittances for July–December FY24 saw a decline of 6.8 per cent year-on-year, totaling $13.43 billion. This represents a decrease of $982.8 million compared to the $14.42 billion registered in FY23.

The report indicated that overseas Pakistanis in Saudi Arabia led the remittance inflow in December 2023, sending a substantial $577.6 million during the month.

This amount reflected a noteworthy 6 per cent monthly increase and exceeded the remittances from the same month in the previous year by over 9 per cent.

Additionally, remittances from the United Arab Emirates (UAE) experienced a marginal increase of almost 2 per cent, rising from $411.8 million in November to $419.2 million in December.

On a yearly basis, remittances from the UAE witnessed a significant surge of nearly 27 per cent, compared to the same month last year.

The United Kingdom also contributed to the positive trend, with remittances amounting to $368 million in December 2023, marking a robust 7.5 per cent increase from November’s $342.2 million.

Furthermore, remittances from the European Union exhibited a substantial growth of 19 per cent year-on-year and 6 per cent on a monthly basis, reaching $284.9 million in December 2023.

Overseas Pakistanis in the United States sent $263.9 million in December, showcasing a year-on-year increase of 8.5 per cent.

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