Pakistan’s remittances clock in at $2.3bn in November, down 8.6% on monthly basis

Inflow of overseas workers’ remittances clocked in at $2.3 billion in November 2023, 8.6% lower on a month-on-month basis when compared to $2.5 billion in October 2023, showed data released on Friday by the State Bank of Pakistan (SBP).

On a yearly basis, the monthly inflow registered an increase of 3.6% 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.

Remittances witnessed an increase last month when experts attributed the rise in the 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, the inflow has declined on monthly basis again this month.

In first five months of FY24, remittances inflow of $11 billion has been recorded as compared to $12.3 billion in the same period last year.

Breakdown of remittances

Overseas Pakistanis in Saudi Arabia remitted the largest amount in November 2023 as they sent $540.3 million during the month. The amount declined by 12.5% on a monthly basis, and was 5.5% up than the $512 million sent by the expatriates in the same month of the previous year.

Inflows from the United Arab Emirates (UAE) also declined 13.6 on a monthly basis, from $473.9 million in October to $409.4 million in November. On a yearly basis, remittances improved by 7.6%, as compared to $380.4 million reported in same month last year.

Remittances from the United Kingdom amounted to $341.7 million during the month, an increase of 3.5% compared to $330.3 million in October 2023.

Meanwhile, remittances from the European Union declined nearly 10% month-on-month as they amounted to $268.3 million in November 2023. Overseas Pakistanis in the US sent $261.5 million in November 2023, a month-on-month decrease of 7.7%.