Saudi Arabia: expats flood Pakistan with high remittances

ISLAMABAD: Pakistan experienced a notable 11.5 percent month-on-month increase in remittances in October, as reported by the State Bank of Pakistan (SBP) on Friday.

Saudi Arabia emerged as the primary contributor to this surge. Official figures from the SBP reveal that Pakistani expatriates sent a total of $2.2 billion in September, and in October, this figure rose by $300 million, reaching a total of $2.5 billion.

The central bank said, “Workers’ remittances recorded an inflow of $2.5 billion during Oct ‘23,” citing a growth of 11.5 percent month-on-month and 9.6 percent year-on-year.

Stock market crosses 55,000 mark

Saudi Arabia led the pack in contributing to the inflows, accounting for $616.8 million, followed by the United Arab Emirates at $473.9 million, the United Kingdom at $330.2 million, and the United States at $283.3 million.

The longstanding cultural, defense, and economic ties between Pakistan and Saudi Arabia have solidified the kingdom’s role as the largest contributor to remittance inflows.

Remittances hold a crucial role in supporting Pakistan’s external account, particularly amidst an ongoing economic crisis that has witnessed currency depreciation and a decline in foreign exchange reserves. The SBP disclosed recorded inflows of $8.8 billion in the first four months of the fiscal year, which commenced on July 1.

Several banks in Pakistan provides remittance tracking system like the UBL remmitance tracking and HBL remittance tracker to help facilitate overseas Pakistanis keep a track of what they send home. Meanwhile, to ensure their welfare, the Overseas Pakistani Foundation acts as the government’s extended arm in helping generate sufficient resources locally and execute coordination with relevant stakeholders at home.