ISLAMABAD: Pakistan received record remittances of $3.243 billion in the month of May 2024, 54.2% higher as compared to $2.103 billion in May 2023.
According to data released by the State Bank of Pakistan (SBP) on Friday on a month-on-month (MoM) basis, the remittances registered an increase of 15.3% as the amount stood at $2.813 billion in April 2024.
Mohammed Sohail, CEO at brokerage house Topline Securities said that the remittance increase is due to Eid inflows and stability in the currency rates.
“We believe YoY growth in remittances will remain stronger in coming months in anticipation of currency stability, and led by expectations of the new International Monetary Fund (IMF) programme,” he added.
Home remittances play an important role in supporting the country’s foreign account, generating Pakistan’s economic activity as well as supplementing the disposable incomes of remittance-dependent families.
During the first 11 months of the current fiscal year workers’ remittances recorded an inflow of $27.093 billion, an increase of 7.7% as compared to $25.146 billion recorded during 11MFY23.
Pakistanis living in Saudi Arabia remained on the top spot in remitting the biggest amount in May 2024 as they sent $819.3 million during the month. The amount was increased by 15% MoM and 56.4% YoY.
Remittance inflow from the United Arab Emirates (UAE) rose on a monthly basis, from $542.5 million in April to $668.5 million in May. On a yearly basis, the inflow recorded an increase of 99.1%, as compared to $335.8 million reported in the same month of the previous year.
Remittances from the United Kingdom (UK) reached $473.2 million during May, showing an increase of 54.4% as compared to $306.4 million in the same month last year.
Remittances from the European Union (EU) increased to 36.4% on a yearly basis as they amounted to $340 million in May 2024.
Pakistani Diaspora in the US remitted $359.5 million in May 2024, a YoY increase of 39.7% while showing an increase of 9% on a monthly basis.
