Pakistan receives $2.2 billion in September remittances

WEB DESK: In September 2023, Pakistan received a substantial influx of remittances totaling US$2.2 billion, as reported by the State Bank of Pakistan.

This marked a 5.3 per cent increase in remittances compared to the previous month. The cumulative remittances for the first three months of the fiscal year 2023–24 amounted to US$6.3 billion.

The major sources of these remittances in September 2023 were Saudi Arabia ($538.2 million), the United Kingdom ($311.1 million), the United Arab Emirates ($400 million), and the United States of America ($263.4 million).

This positive trend in September followed a notable rise in remittances in August 2023, when Pakistan received $2.1 billion from its foreign workers. This figure represented a 3.1 per cent increase compared to July’s remittances, which stood at $2.03 billion, as reported by the State Bank of Pakistan.

However, it is crucial to note a concerning trend on a yearly basis. In September 2023, Pakistan’s monthly remittances experienced a 24 per cent decline, down from $2.7 billion in the same month of the previous year.

Furthermore, the cumulative remittances for July and August of the fiscal year 2023–24 amounted to $4.1 billion. While this figure is significant, it reflects a 22 per cent decline compared to the same period in the previous fiscal year.

This decline, amounting to $1.13 billion, emphasises the need for strategic measures to address the decreasing trend in remittances, which is essential for the country’s economic stability.

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In August 2023, Saudi Arabia emerged as the largest contributor to Pakistan’s remittances, sending $490.1 million.

Although this amount showed a 1 per cent improvement from the previous month, it was nearly 29 per cent lower than the remittances received in the same month of the previous year, which amounted to $692.6 million.

This decrease underscores the importance of monitoring and addressing the challenges faced by overseas Pakistanis, ensuring their continued support for the country’s economy.