Remittances surge upwards in the last month of 2024
Pakistan’s remittance inflows reached $3.08 billion in December 2024, reflecting a 6% increase from the $2.92 billion recorded in November 2024, according to data released by the State Bank of Pakistan (SBP) on Friday. The inflows for December 2024 were also 29.3% higher compared to $2.38 billion in the same month the previous year.
In the first half of FY25, remittances surged 33% year-on-year, reaching $17.8 billion, compared to $13.4 billion in the first half of FY24.
These remittance inflows play a vital role in supporting Pakistan’s external account, boosting economic activity, and supplementing the incomes of households that depend on remittances. Finance Minister Muhammad Aurangzeb previously indicated that remittance inflows are expected to reach a record $35 billion in FY25, up from $30.25 billion in FY24. SBP Governor Jameel Ahmad also expressed confidence that the $35 billion target will be met by the end of the fiscal year.
Breakdown of Remittances:
- Saudi Arabia: Pakistani expatriates in Saudi Arabia sent the highest remittances in December 2024, totaling $770.6 million, marking a 6% increase from November and a 33% rise from $577.6 million in December 2023.
- United Arab Emirates (UAE): Remittances from the UAE increased by 2% month-on-month, from $619.4 million in November to $631.5 million in December. Year-on-year, the remittances saw a significant 51% rise from $419.2 million.
- United Kingdom: The UK contributed $456.9 million in remittances, an 11% increase from November 2024’s $409.9 million, and a 24% rise from the same month in 2023.
- European Union: Remittances from the EU rose 11% month-on-month, totaling $360.3 million in December 2024, compared to $323.5 million in November.
- United States: Remittances from the US totaled $284.3 million, showing a slight 1% decrease compared to the previous month.