Key Takeaways:
– Remittances increased by 10.7% to $30.3 billion in FY24.
– Significant contributions from Saudi Arabia, UAE, UK, and USA.
– Remittances are essential for Pakistan’s foreign exchange reserves and economic stability.
Pakistan’s central bank reported a significant rise in remittances, with $30.3 billion flowing into the country during the last fiscal year, marking a 10.7 percent increase from $27.3 billion in the previous financial year. A large portion of these funds originated from the Middle East.
Remittances play a vital role in bolstering Pakistan’s economy by contributing to foreign exchange reserves and alleviating the current account deficit. The government has focused on promoting overseas employment for Pakistanis, particularly in the Middle East, to sustain this critical economic inflow.
According to the State Bank of Pakistan (SBP), the country received $3.2 billion in remittances in June 2024 alone, representing a 44.4 percent year-on-year growth. Over the entire fiscal year, the main sources of these remittances were Saudi Arabia ($808.6 million), the United Arab Emirates ($654.3 million), the United Kingdom ($487.4 million), and the United States ($322.1 million).
