Islamabad, Jan 10: The State Bank of Pakistan (SBP) reported on Friday that inflows of remittances from overseas workers reached $3.08 billion in December 2024. This marks a 6% increase compared to $2.92 billion in November 2024. Year-over-year, remittances grew by 29.3%, rising from $2.38 billion in the same month of the previous year.
For the first half of the fiscal year 2024-25 (1HFY25), total remittances surged by 33%, amounting to $17.8 billion, compared to $13.4 billion in the first half of FY24.
Remittances significantly contribute to Pakistan’s external account stability, drive economic activity, and enhance the disposable income of households reliant on these funds.
Last month, Finance Minister Muhammad Aurangzeb expressed confidence that remittance inflows would reach an all-time high of $35 billion in FY25, surpassing the $30.25 billion recorded in FY24. Similarly, SBP Governor Jameel Ahmad projected that remittance inflows would “easily” achieve this target.
Remittance Breakdown
- Saudi Arabia:
Pakistani workers in Saudi Arabia sent $770.6 million in December 2024, reflecting a 6% increase month-over-month and a 33% rise compared to $577.6 million in December 2023. - United Arab Emirates (UAE):
Remittances from the UAE grew slightly by 2% month-over-month, increasing from $619.4 million in November to $631.5 million in December. Year-over-year, this represents a 51% increase from $419.2 million in December 2023. - United Kingdom (UK):
Funds from the UK totaled $456.9 million in December 2024, an 11% rise compared to $409.9 million in November 2024. Year-over-year, this marks a 24% increase. - European Union (EU):
Inflows from the EU reached $360.3 million in December 2024, up by 11% from $323.5 million in November 2024. - United States (US):
Remittances from the US were $284.3 million in December 2024, showing a 1% decrease month-over-month.
Importance of Remittances
Remittances remain a critical source of foreign exchange for Pakistan, supporting the economy by stabilizing the external account, boosting economic activity, and supplementing the incomes of families dependent on these inflows.
