Pakistan’s remittances clock in at $2.4bn in January, up 26% YoY

Inflow of overseas workers’ remittances clocked in at $2.4 billion in January 2024, 1% higher on a month-on-month basis when compared to $2.38 billion in December 2023, showed data released by the State Bank of Pakistan (SBP) on Monday.

On a yearly basis, the monthly inflow of remittances registered an increase of 26% as it stood at $1.9 billion in the same month of the previous year, data showed.

Home remittances play a significant role in supporting the country’s external account, stimulating Pakistan’s economic activity as well as supplementing disposable incomes of remittance-dependent households.

However, despite the latest increase in January, workers’ remittances inflow of $15.83 billion was recorded during July-January FY24, reduced by 3% YoY or $386 million, as compared to $16.32 billion registered in 7MFY23.

Breakdown

Overseas Pakistanis in Saudi Arabia maintained their top spot, remitting the largest amount in January 2024 as they sent $587.3 million during the month. The amount improved by 2% on a monthly basis, and was over 43% higher than the $409.4 million sent by the expatriates in the same month of the previous year.

Inflows from the United Arab Emirates (UAE) saw a marginal decline of 3% on a monthly basis, from $419.2 million in December to $407.6 million in January. However, on a yearly basis, the remittances registered a massive increase of nearly 51%, as compared to $269.5 million reported in same month last year.

Remittances from the United Kingdom amounted to $362.1 million during the month, a drop of 2% compared to $368 million in December 2023.

Meanwhile, remittances from the European Union improved 20% year-on-year and 2% on a monthly basis as they amounted to $290.1 million in January 2024.

Overseas Pakistanis in the US sent $283.4 million in January 2024, a year-on-year increase of 32%, compared to $214.4 in same month previous year.