Inflow of overseas workers’ remittances clocked in at $2.4 billion in December 2023, 5.4% higher on a month-on-month basis when compared to $2.25 billion in November 2023, showed data released on Wednesday by the State Bank of Pakistan (SBP).
On a yearly basis, the monthly inflow of remittances registered an increase of 13.4% as it stood at $2.1 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.
Jul-Nov remittances down 10pc to $11.045bn YoY
However, despite the increase in December, workers’ remittances inflow of $13.43 billion was recorded during July-December FY24, a decline of 6.8% YoY or $982.8 million, as compared to $14.42 billion registered in 3MFY23.
Breakdown
Overseas Pakistanis in Saudi Arabia remitted the largest amount in December 2023 as they sent $577.6 million during the month. The amount improved by 6% on a monthly basis, and was over 9% more than the $529.9 million sent by the expatriates in the same month of the previous year.
Inflows from the United Arab Emirates (UAE) saw a marginal increase of nearly 2% on a monthly basis, from $411.8 million in November to $419.2 million in December. On a yearly basis, the remittances registered a massive increase of nearly 27%, as compared to $331 million reported in same month last year.
Remittances from the United Kingdom amounted to $368 million during the month, a rise of 7.5% compared to $342.2 million in November 2023.
Meanwhile, remittances from the European Union improved 19% year-on-year and 6% on a monthly basis as they amounted to $284.9 million in December 2023. Overseas Pakistanis in the US sent $263.9 million in December 2023, a year-on-year increase of 8.5%.
Last month, the World Bank projected a drop in remittance flows to Pakistan to $24 billion in 2023 and further drop below $22 billion with 10% decline in 2024, saying the growing economic turmoil sparked by a balance of payment crisis and high debt have led to a worsening loss of public confidence reflected in a diversion of remittances from formal to informal channels.