ISLAMABAD: Workers’ remittances have increased by 10.68% to $30.25 billion in the fiscal year 2023-24, compared to $27.33 billion in FY23, according to the latest data issued by the State Bank of Pakistan (SBP).
In June alone, remittances jumped by 44.4% year-over-year to $3.16 billion, compared to $2.19 billion in the same month last year. However, on a monthly basis, remittances fell 2.6% from $3.24 billion in the previous month.
Throughout the year, Saudi Arabia held the top spot, contributing $7.42 billion, an increase of 13.6% compared to the previous year. The second largest inflow came from the UAE, which sent $5.53 billion, up 18.9% year-over-year, according to the Mettis Global News.
Pakistanis working in the UK sent $4.52 billion during FY24, an increase of 11.0% from the previous year.
Additionally, inflows from EU countries reached $3.53 billion, up 11.5% year-over-year. Remittances from Pakistanis working in the USA rose by 12.7% year-over-year to $3.53 billion.
Workers’ remittances are transfers of earnings by migrants to support their families back home. These remittances are a major source of foreign exchange earnings for Pakistan.
“For many countries, money transfers from citizens working abroad are a lifeline for development,” says Dilip Ratha of the World Bank.
These inflows have significantly financed Pakistan’s trade and primary income deficit over the last half-century.
