Overseas Pakistanis sent a record-breaking $3.243 billion back home in May 2024, marking a significant 54.2% year-on-year increase from the $2.103 billion received in May 2023. This surge, primarily driven by Eid inflows and a stable rupee, was highlighted in data released by the State Bank of Pakistan (SBP) on Friday.
The remittance inflows also saw a 15.3% rise month-on-month, with $2.813 billion recorded in April 2024. For the first eleven months of the fiscal year 2024, remittances reached $27.093 billion, up 7.7% from $25.146 billion in the same period the previous fiscal year.
Mohammed Sohail, CEO of Topline Securities, attributed this substantial growth to Eid inflows and currency stability. “We believe year-on-year growth in remittances will remain stronger in the coming months in anticipation of currency stability, and led by expectations of the new International Monetary Fund (IMF) programme,” he stated.
Breakdown of Inflows by Region
Saudi Arabia led the inflows, contributing $819.3 million in May 2024, which is a 15% increase from April and a 56.4% surge compared to May 2023.
The United Arab Emirates (UAE) followed, with remittances rising from $542.5 million in April to $668.5 million in May, nearly doubling year-on-year from $335.8 million in May 2023.
From the United Kingdom (UK), $473.2 million were remitted in May, reflecting a 54.4% increase from $306.4 million in May 2023.
The European Union (EU) saw remittances surge 36.4% year-on-year to $340 million in May 2024, with a 14.1% monthly increase.
In the United States, overseas Pakistanis sent $359.5 million in May 2024, marking a 39.7% year-on-year increase and a 9% rise compared to April 2024.
Economic Impact
Home remittances play a crucial role in supporting Pakistan’s external account, stimulating economic activity, and increasing the disposable incomes of households reliant on these funds. The record high in May highlights the importance of these inflows in bolstering the country’s economic stability and growth, especially during festive periods like Eid.
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