Pakistan receives record remittances of $3.24bn in May, up over 54% YoY

Inflow of overseas workers’ remittances hit a record high of $3.243 billion in May 2024, 54.2% higher on a year-on-year (YoY) basis when compared to $2.103 billion in May 2023, showed data released by the State Bank of Pakistan (SBP) on Friday.

This is the highest figure on a monthly basis in Pakistan’s history.

On a month-on-month (MoM) basis, inflow of remittances registered an increase of 15.3% as the amount stood at $2.813 billion in April 2024, data showed.

“We believe this is due to Eid inflows and currency stability,” said Mohammed Sohail, CEO at brokerage house Topline Securities.

“We believe YoY growth in remittances will remain stronger in coming months in anticipation of currency stability, and led by expectations of the new International Monetary Fund (IMF) programme,” he added.

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

During first 11 months of FY24, workers’ remittances recorded an inflow of $27.093 billion, an increase of 7.7% as compared to $25.146 billion remittances recorded during 11MFY23.

Breakdown

Overseas Pakistanis in Saudi Arabia maintained their top spot, remitting the largest amount in May 2024 as they sent $819.3 million during the month. The amount increased by 15% MoM and 56.4% YoY.

Inflows from the United Arab Emirates (UAE) rose on a monthly basis, from $542.5 million in April to $668.5 million in May. On a yearly basis, the remittances registered an increase of 99.1%, as compared to $335.8 million reported in the same month last year.

Remittances from the United Kingdom (UK) amounted to $473.2 million during May, an increase of 54.4% as compared to $306.4 million in the same month the previous year.

Remittances from the European Union (EU) surged 36.4% on a yearly basis as they amounted to $340 million in May 2024. On a monthly basis, they were up 14.1%.

Overseas Pakistanis in the US sent $359.5 million in May 2024, a YoY increase of 39.7% while jumping by 9% on a monthly basis.