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- Remittances in May were up by 15.3 percent on a month-on-month basis and 54.2 percent year-on-year
- Saudi Arabia contributed the most to the inflows with $819.3 million, followed by the UAE, UK and US
KARACHI: Pakistan received its highest ever worker remittances of $3.2 billion in the month of May, the Pakistani central bank said on Friday, with Saudi Arabia being the top contributor.
Remittances bring billions of dollars annually from overseas Pakistanis and are vital to Pakistan’s economy. These inflows bolster foreign exchange reserves, stabilize the balance of payments, and support the Pakistani currency.
Pakistani expatriates sent a total of $3.2 billion in May that recorded an increase of 15.3 percent on a month-on-month basis and by 54.2 percent on a year-on-year basis, according to official figures shared by the State Bank of Pakistan (SBP).
“Remittances inflows during May 24 were mainly sourced from Saudi Arabia ($819.3 million), United Arab Emirates ($668.5 million), United Kingdom ($473.2 million) and United States of America ($359.5 million),” the SBP said in a statement.
“Cumulatively, with inflow of $ 27.1 billion, workers’ remittances increased by 7.7 percent during the first eleven months of FY24 compared to the same period last year.”
Remittances play a major role in supporting Pakistan’s external account, especially at a time when the country is grappling with an economic crisis that has weakened its currency and caused its foreign exchange reserves to plummet.
Pakistan had set a worker remittance inflow target of $28.5 billion for the current fiscal year ending in July.
“This is higher than our expectations as we projected full year remittances at $28bn, while Pakistan has achieved remittances of $27bn in 11MFY24,” Karachi-based Topline Securities brokerage firm said in its report.
“We believe, with this momentum and growth trajectory, Pakistan can achieve remittances of $29.5-30bn for FY24, up 8-10 percent.”
The higher momentum in remittances was likely to persist due to stability in the Pakistani currency and expectations of a new International Monetary Fund (IMF) program, it added.