Inflow of overseas workers’ remittances into Pakistan stood at $2.92 billion in November 2024, 4.5% lower when compared to $3.05 billion in October 2024, showed data released on Monday by the State Bank of Pakistan (SBP).
On year-on-year basis, remittances increased by 29.1% against $2.26 billion in the same month of the previous year.
During 5MFY25, remittances went up by 33.6% YoY to $14.8 billion as compared to $11.1 billion in 5MFY24.
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.
Finance Minister Muhammad Aurangzeb said last week the inflow of workers’ remittances is expected to hit an all-time high of $35 billion in the current fiscal year 2024-25, compared to $30.25 billion registered in FY24.
Breakdown of remittances
Overseas Pakistanis in Saudi Arabia remitted the largest amount in November 2024 as they sent $729.2 million during the month. The amount was down 5% on a monthly basis, but 34% higher than the $543.6 million sent by the expatriates in the same month of the previous year.
Inflows from the United Arab Emirates (UAE) marginally decreased by 0.25% on a monthly basis, from $620.9 million in October to $619.4 million in November. On a yearly basis, remittances jumped over 50%, as compared to $411.8 million reported in the same month last year.
Remittances from the United Kingdom amounted to $409.9 million during the month, down by 4.6% compared to $429.8 million in October 2024. YoY inflows from UK improved by 20%.
Meanwhile, remittances from the European Union decreased by 10% MoM as they amounted to $323.1 million in November 2024, as compared to $359.1 million in October.
Overseas Pakistanis in the US sent $288.2 million in November 2024, a MoM decrease of 4.3%.
In October this year, the SBP, to enhance the flow of home remittances, revamped the incentive structure for banks and Exchange Companies (ECs). Under the system, both banks and ECs will receive two types of incentives – Fixed Component Incentives and Variable Component Incentives.
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