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SBP reports 39% quarterly growth in the inflows of remittances during July-Sept 2024

ISLAMABAD: Overseas workers’ remittances reached $2.85 billion in September 2024, marking a significant 29% year-on-year (YoY) increase compared to $2.20 billion in the same month last year, according to data released by the State Bank of Pakistan (SBP) on Wednesday.

However, on a month-on-month (MoM) basis, remittances in September were 3% lower than the $2.94 billion recorded in August 2024.

For the first quarter of FY25 (3MFY25), remittances surged by nearly 39% YoY, totaling $8.8 billion compared to $6.3 billion during the same period in FY24. In dollars, the remittances surged by $2.50 billion in first three months of the ongoing fiscal year.

Experts attribute the rise in remittances to a stable PKR exchange rate, a reduced gap between open and inter-bank market rates, and an increasing number of workers migrating abroad.

“These stronger inflows will help Pakistan maintain PKR stability and manage the current account deficit,” noted Mohammed Sohail, CEO of Topline Securities, in a report.

Home remittances play a critical role in supporting Pakistan’s external account, boosting economic activity, and supplementing the disposable incomes of remittance-dependent households.

Remittance Breakdown for September 2024

  • Saudi Arabia: Overseas Pakistanis sent the largest amount, remitting $681.3 million, up 27% YoY, although down 4% from August 2024.
  • United Arab Emirates (UAE): Inflows increased by 4% MoM to $560.3 million from $538.4 million in August, showing a 40% YoY rise from $399.8 million.
  • United Kingdom: Remittances amounted to $423.6 million, down 11% from August but up 36% YoY.
  • European Union: Inflows totaled $365.3 million, a 3% MoM decline.
  • United States: Remittances dropped by 15% MoM to $274.9 million.

To further boost remittance inflows, the SBP introduced a revamped incentive structure for banks and Exchange Companies (ECs). Under this new system, ECs will receive Rs2 for every USD of remittances surrendered to SBP-designated banks, while banks will be reimbursed SAR 20 for all eligible home remittance transactions of USD 100 or more.

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I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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