The State Bank of Pakistan (SBP) released data on Friday showing that the inflow of overseas workers’ remittances into Pakistan stood at $3.08 billion in December 2024, 6% higher than the $2.92 billion in November 2024.
Remittances increased by 29.3% year over year, to $2.38 billion, compared to the same month last year.
Remittances increased 33% year over year to $17.8 billion in 1HFY25, compared to $13.4 billion in 1HFY24.
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.
Last month, Finance Minister Muhammad Aurangzeb said the inflows of workers’ remittances are 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.
State Bank of Pakistan (SBP) Governor Jameel Ahmad also projected remittance flows to “comfortably achieve” the $35 billion level in the current fiscal year.
Breakdown of remittances
Overseas Pakistanis in Saudi Arabia remitted the largest amount in December 2024 as they sent $770.6 million during the month. The amount was up 6% on a monthly basis, but 33% higher than the $577.6 million sent by the expatriates in the same month of the previous year.
Inflows from the United Arab Emirates (UAE) marginally increased by 2% on a monthly basis, from $619.4 million in November to $631.5 million in December. On a yearly basis, remittances jumped nearly 51%, as compared to $419.2 million reported in the same month last year.
Remittances from the United Kingdom amounted to $456.9 million during the month, up by 11% compared to $409.9 million in November 2024. YoY inflows from UK improved by 24%.
Meanwhile, remittances from the European Union increased by 11% MoM as they amounted to $360.3 million in December 2024, as compared to $323.5 million in November.
Overseas Pakistanis in the US sent $284.3 million in December 2024, a MoM decrease of 1%.
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