Pakistan received $2.92 billion in remittances from overseas workers in November 2024, marking a 4.5% decrease compared to $3.05 billion in October 2024, according to data released by the State Bank of Pakistan (SBP) on Monday.
However, on an annual basis, remittances showed a significant 29.1% growth, rising from $2.26 billion in November 2023.
For the first five months of the fiscal year 2024-25 (5MFY25), total remittances increased by 33.6% year-on-year, reaching $14.8 billion compared to $11.1 billion during the same period last year.
Remittances remain crucial for bolstering Pakistan’s external account, fueling economic activity, and supporting remittance-dependent households. Finance Minister Muhammad Aurangzeb recently projected a record-high inflow of $35 billion for FY25, surpassing the $30.25 billion received in FY24.
Breakdown of Remittances by Region
- Saudi Arabia: The largest contribution came from Saudi Arabia, where expatriates sent $729.2 million in November, down 5% from October but up 34% from $543.6 million in November 2023.
- United Arab Emirates (UAE): Inflows from the UAE slightly declined by 0.25% month-on-month to $619.4 million but surged over 50% year-on-year from $411.8 million.
- United Kingdom: Remittances amounted to $409.9 million, reflecting a 4.6% monthly drop but a 20% annual increase.
- European Union: Contributions from the EU decreased by 10% month-on-month to $323.1 million, compared to $359.1 million in October.
- United States: Pakistani workers in the US sent $288.2 million in November, a 4.3% decrease from the previous month.
Initiatives to Boost Remittances
To enhance remittance flows, the SBP revised its incentive structure for banks and exchange companies (ECs) in October 2024. The updated framework offers Fixed Component and Variable Component Incentives to encourage greater inflows.
