Pakistan records surge in overseas remittances, reaching $2.5 billion

WEB DESK: In October 2023, the influx of remittances from overseas workers reached $2.5 billion, marking an 11.5 per cent increase compared to the $2.2 billion recorded in September 2023.

This information was disclosed in a report released on Friday by the State Bank of Pakistan (SBP).

On a yearly basis, the monthly inflow demonstrated a 9.6 per cent rise when compared to the remittances reported in the same month of the previous year.

Home remittances play a crucial role in supporting the country’s external account, contributing to the stimulation of Pakistan’s economic activity, and supplementing the disposable incomes of remittance-dependent households.

Experts attribute the recent surge in remittance inflows to an enhanced exchange rate, driven by a crackdown on currency smugglers and hoarders.

This crackdown resulted in a reduction of the rate gap between the open and interbank markets.

However, there has been a decline in workers’ remittances inflow, amounting to $8.8 billion during July–October FY24.

This reflects a decrease of over 13 per cent YoY, or $1.56 billion, compared to the $10.14 billion recorded in 4MFY23.

In October 2023, the highest remittance amount came from overseas Pakistanis in Saudi Arabia, totaling $616.8 million. This marked a 15 per cent monthly increase and nearly a 6 per cent rise compared to the same month of the previous year, when expatriates sent $582.5 million.

Remittances from the United Arab Emirates (UAE) experienced a notable monthly increase of 19 per cent, rising from $399.8 million in September to $473.9 million in October.

On a yearly basis, remittances improved by 11 per cent compared to the $426.1 million reported in the same month last year.

The United Kingdom contributed $330.2 million in remittances during the month, indicating a 6 per cent increase compared to $311.3 million in September 2023.

Additionally, remittances from the European Union witnessed a significant 28 per cent year-on-year increase, reaching $297.5 million in October 2023.

Overseas Pakistanis in the US sent $283.3 million in October 2023, reflecting an 8 per cent year-on-year increase.

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