Pakistan Receives Record $3 Billion in Remittances for October 2024
KARACHI: Pakistan received a significant boost in remittances, surpassing $3 billion in October 2024, marking the highest monthly inflow so far in the current fiscal year (FY25), according to a report from the State Bank of Pakistan (SBP) released on Friday.
The October figures highlight a continued upward trend in remittance inflows, which grew by 6.7% compared to September 2024. Overseas Pakistanis sent home $3.1 billion in October, up from $2.86 billion in September, a jump of $192 million. This also represents a notable year-on-year increase of 24%, compared to the $2.46 billion remitted in October 2023.
The largest contributions came from key countries, with Saudi Arabia leading at $766.7 million, followed by the United Arab Emirates at $620.9 million, the United Kingdom at $429.5 million, and the United States at $299.3 million, according to the SBP report.
Over the four-month period from July to October 2024, total remittances amounted to $11.8 billion, a 34.7% increase from the $8.8 billion received during the same period last year. This surge underscores the growing role of remittances in supporting Pakistan’s foreign exchange reserves and contributing to overall economic stability.
The most significant growth was seen in remittances from Saudi Arabia, which rose by 37% to $2.9 billion in the first four months of FY25. Saudi Arabia now accounts for about 25% of Pakistan’s total remittance inflows for the year. Additionally, remittances from the United States grew by 14% to $1.14 billion, while inflows from the United Kingdom surged by 39% to $1.7 billion. The UAE saw a remarkable 56% increase, with total remittances reaching $2.3 billion.
SBP Governor Jameel Ahmed has forecast that remittance inflows will continue to rise and is expected to reach around $34 billion by the end of FY25.
Banking sector analyst Ibrahim Amin predicts that the coming months will see further growth in remittances, particularly from Gulf countries, thanks to the SBP’s partnership with the Buna payment system. He noted that the influx of both blue-collar workers and white-collar professionals seeking better job opportunities in the Gulf will contribute to this positive trend.
Amin also suggested that to maximize remittance inflows, the government, diplomatic missions, banks, and overseas organizations should focus on raising awareness of new services available to overseas workers, which could enhance remittance channels and increase the volume of funds being sent home.