Pakistan’s remittances clock in at $2.5bn in October, up 11.5% on monthly basis
- On yearly basis, inflow up nearly 10%
Inflow of overseas workers’ remittances clocked in at $2.5 billion in October 2023, 11.5% higher on a month-on-month basis when compared to $2.2 billion in September 2023, showed data released on Friday by the State Bank of Pakistan (SBP).
On a yearly basis, the monthly inflow registered an increase of 9.6% as compared to the remittances registered 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.
Experts attributed the increase in remittance inflows to an improvement in the exchange rate, amid a crackdown against currency smugglers and hoarders, which led to a reduction of the rate gap between the open and inter-bank markets.
However, workers’ remittances inflow of $8.8 billion has been recorded during July-October FY24, a decline of over 13% YoY or $1.56 billion, as compared to $10.14 billion registered in 4MFY23.
Breakdown of remittances
Overseas Pakistanis in Saudi Arabia remitted the largest amount in October 2023 as they sent $616.8 million during the month. The amount improved by 15% on a monthly basis, and was nearly 6% up than the $582.5 million sent by the expatriates in the same month of the previous year.
Inflows from the United Arab Emirates (UAE) saw a significant jump of 19% on a monthly basis, from $399.8 million in September to $473.9 million in October. On a yearly basis, remittances improved by 11%, as compared to $426.1 million reported in same month last year.
Remittances from the United Kingdom amounted to $330.2 million during the month, an increase of 6% compared to $311.3 million in September 2023.
Meanwhile, remittances from the European Union jumped 28% year-on-year as they amounted to $297.5 million in October 2023. Overseas Pakistanis in the US sent $283.3 million in October 2023, a year-on-year increase of 8%.
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