Saudi Arabia, UAE lead remittance flows to Pakistan

ISLAMABAD: The State Bank of Pakistan (SBP) revealed on Friday that the country received $3.08 billion in remittances from overseas workers in December 2024, marking a 6 per cent increase compared to the $2.92 billion sent in November 2024.

In comparison to December 2023, remittances surged by 29.3 per cent, from $2.38 billion to the December 2024 total. Over the first half of the 2024-25 fiscal year, remittances reached $17.8 billion, a 33 per cent year-on-year rise from $13.4 billion in the same period of the previous fiscal year.

Finance Minister Muhammad Aurangzeb recently projected that remittance inflows would reach a record $35 billion by the end of the fiscal year 2024-25, surpassing the $30.25 billion recorded in FY24. Similarly, SBP Governor Jameel Ahmad expressed confidence that the $35 billion target would be achieved.

Among the top contributors, expatriates in Saudi Arabia sent $770.6 million in December, up 6 per cent from the previous month and 33 per cent higher than the $577.6 million sent in the same month the previous year.

Remittances from the United Arab Emirates (UAE) saw a modest monthly increase of 2 per cent, rising from $619.4 million in November to $631.5 million in December. Compared to December 2023, however, inflows from the UAE saw a remarkable 51 per cent rise, from $419.2 million.

The United Kingdom sent $456.9 million in remittances in December, an 11 per cent increase from November’s $409.9 million. Year-on-year, UK remittances grew by 24 per cent.

In the European Union, remittances climbed by 11 per cent from November, reaching $360.3 million in December, compared to $323.5 million the previous month.

However, remittances from the United States slightly declined by 1 per cent from November, totalling $284.3 million in December 2024.

For those unaware, these remittances are vital for Pakistan’s economy, helping to strengthen the country’s external accounts and boost local economic activity. They also provide crucial financial support to families who rely on them for their daily expenses.

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