Overseas workers’ remittances to Pakistan surged by 47.6 percent year-on-year in July 2024, according to the State Bank of Pakistan (SBP) this week, with Saudi Arabia continuing to be the leading source of these vital inflows for the country.
Remittances contribute billions of dollars annually from Pakistanis living abroad, playing a crucial role in the nation’s economy. These funds bolster foreign exchange reserves, help stabilize the balance of payments, and support the value of the Pakistani currency.
“In July 2024, remittances grew by 47.6 percent on a year-on-year basis,” the SBP announced in a press release on Saturday.
The central bank reported that Saudi Arabia remained the top contributor, with $761.1 million in remittances in July 2024. The United Arab Emirates (UAE) followed, contributing $611.1 million.
The UK accounted for $443.5 million in remittances, while the United States sent $300.1 million.
Pakistan and Saudi Arabia share strong cultural, defense, and economic ties, with over two million Pakistanis residing in the kingdom. For years, Saudi Arabia has been the largest contributor to Pakistan’s remittance inflows.
Remittances play a critical role in supporting Pakistan’s external accounts, especially as the country makes modest gains after a prolonged economic crisis that has depleted foreign exchange reserves and weakened the national currency.
