KARACHI: Pakistan received highest-ever monthly inflows of home remittances amounted to $ 3.2 billion in the month of May 2024, the State Bank of Pakistan (SBP) reported on Friday.
Analysts said that the current surge in the monthly home remittances is because of Eid-related inflows as overseas Pakistanis sent more amounts to their beloved in Pakistan for Qurbani and other Eid-related expenses.
They said that higher remittances attributed to a significant surge in Pakistanis, who migrated to other countries in the last two years. Average of 850,000 emigrated during the 2022-23, compared to an average of 323,000 between 2017 and 2021. Analysts said that massive home remittances inflows will help to reduce the pressure on the external account of the country.
According to SBP, in terms of growth, during May 24, remittances increased by 15.3 percent on a MoM basis workers’ remittances recorded an inflow of $3.243 billion during May 24 compared to $ 2.813 billion arrived in April 2024, depicting an increase of $ 429 million. Inflows in May 2024, also some 54.2 percent higher than May 2023, in which home remittance amounted to $ 2.1 billion were received.
Remittances in May 2024 are all time high inflows as previously highest ever $3.12 billion remittances was received in April 2022.
Remittance inflows during May 2024 were mainly sourced from Saudi Arabia $819.3 million, United Arab Emirates $668.5 million, United Kingdom $473.2 million and United States of America $359.5 million.
Cumulatively, workers’ remittances increased by 7.7 percent during the first eleven months of FY24 compared to the same period last year. Some $ 27.1 billion home remittances received during July-May of FY24 up from $ 25.146 billion in corresponding period of last fiscal year (FY23).
Analysts said that remittances inflows are higher than IMF’s expectations as the full year projection for home remittances was $28 billion, while Pakistan has achieved remittances of $27 billion in the first eleven months of this fiscal year.
With this momentum and growth trajectory, Pakistan can achieve remittances of $29.5 to $30 billion for FY24. Analysts believed higher momentum in remittances is likely to persist due to stability in PKR/USD and expectations of a new IMF program.
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