Workers’ remittances dip by 6.18% in February

WEB DESK: In a recent report by the State Bank of Pakistan (SBP), workers’ remittances for February witnessed a month-over-month (MoM) decline of 6.18 per cent, amounting to $2.25 billion compared to the previous month’s $2.4 billion.

However, on a yearly basis, the data reveals a contrasting picture with a robust 13.03 per cent year-over-year (YoY) increase, showcasing an upward trajectory from $1.99 billion in the same month last year.

Workers’ remittances hold a pivotal role in bolstering Pakistan’s external account, playing a crucial part in stimulating the nation’s economic activity while contributing to the disposable incomes of remittance-dependent households.

The primary sources of these inflows were from Saudi Arabia, which led the way with $539.84 million, closely followed by the United Arab Emirates (UAE), which contributed $384.71 million.

The United Kingdom (UK) also played a significant role with $345.97 million, followed by the United States of America (USA) at $287.39 million and the European Union (EU) countries with $263.38 million.

Taking a broader perspective, on a cumulative basis for the first eight months of the fiscal year 2024 (8MFY24), the total remittances amounted to $18.08 billion.

While this reflects a slight decrease of 1.23 per cent compared to the $18.31 billion received in the same period of the previous fiscal year (8MFY23), the overall trend remains positive, emphasising the resilience of remittance inflows into Pakistan.

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