Remittances sent home by overseas Pakistanis reached a record high of $3.243 billion in May 2024, marking a 54.2% year-on-year increase from $2.103 billion in May 2023, according to data released by the State Bank of Pakistan (SBP) on Friday. This surge is mainly attributed to Eid inflows and a strong rupee.
Compared to April 2024, the inflows rose by 15.3% from $2.813 billion. Over the first 11 months of FY24, remittances totaled $27.093 billion, a 7.7% increase from $25.146 billion during the same period of the previous fiscal year.
Mohammed Sohail, CEO of Topline Securities, attributed this increase to Eid inflows and currency stability. He added, “We believe year-on-year growth in remittances will remain strong in the coming months, driven by currency stability and expectations of a new International Monetary Fund (IMF) program.”
Saudi Arabia led the inflows, remitting $819.3 million in May 2024, a 15% month-on-month increase and a 56.4% year-on-year surge.
Inflows from the United Arab Emirates (UAE) rose from $542.5 million in April to $668.5 million in May, marking a significant monthly increase. Year-on-year, remittances from the UAE nearly doubled, jumping 99.1% from $335.8 million in May 2023.
Remittances from the United Kingdom (UK) totaled $473.2 million in May, a 54.4% increase from $306.4 million in May 2023.
From the European Union (EU), remittances surged 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, reflecting a 39.7% year-on-year increase and a 9% rise compared to the previous month.
Home remittances play a crucial role in supporting Pakistan’s external account, stimulating economic activity, and increasing the disposable incomes of households that rely on these funds.
