In July 2024, Pakistan received $3 billion in remittances from overseas workers, marking a significant 48% increase compared to $2.03 billion in the same month the previous year.
This data, released on Friday by the State Bank of Pakistan, indicates that the inflow is the highest recorded for July.
Despite the impressive year-on-year growth, the remittance inflow in July 2024 was 5% lower compared to June 2024, when it reached $3.158 billion. According to brokerage firm Topline Securities, the July 2024 figure represents the highest ever for the month.
Remittances are crucial for Pakistan’s economy, bolstering the external account, driving economic activity, and supporting households that rely on these funds. The World Bank had previously projected a 7% increase in remittances for 2024, anticipating a total of $28 billion, with further growth to about $30 billion in 2025. For fiscal year 2023-24, Pakistan’s remittances totaled $30.3 billion, reflecting a 10.7% year-on-year increase.
Breaking down the remittance sources, Pakistani expatriates in Saudi Arabia sent the largest amount, totaling $761 million in July. This figure, while down 6% from the previous month, represents a 56% increase compared to $487 million sent in July 2023.
Remittances from the United Arab Emirates (UAE) also saw a decline of 7% from June’s $654 million to $611 million in July, though this was a 94% increase from $315 million year-over-year.
Remittances from the United Kingdom totaled $443 million, a 9% decrease from June’s $487 million. Conversely, remittances from the European Union rose nearly 6% month-on-month to $351 million. Inflows from the US amounted to $300 million, down 7% from June.
