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Overseas Pakistani Workers’ Remittances Reach $30.3 Billion in Fiscal Year 2023-24

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According to recent data released by the State Bank of Pakistan (SBP), remittances sent home by overseas Pakistani workers reached $30.3 billion in the fiscal year 2023-24 (FY24), marking a significant 10.7% increase compared to the previous fiscal year’s $27.3 billion in FY23. However, while this increase is notable, on a month-on-month basis, there was a 3% decrease in inflows, with June 2024 recording $3.16 billion compared to May 2024’s $3.24 billion. Nevertheless, this figure represents a substantial 44% increase from the same month in the previous year when remittances stood at $2.2 billion.

The rise in remittances through official and legal channels can be attributed to the crackdown on illegal dollar activity, dollar speculators, and money changers, leading to an increase in the use of regulated money-transferring channels by overseas Pakistanis. Furthermore, analysts note that a stable currency, a growth in the number of Pakistani immigrants in other countries, and the overall stable economy of Pakistan have been significant factors contributing to the boost in remittances in the last fiscal year.

The World Bank’s “Migration and Development Brief 40” report, published recently, highlighted Pakistan as one of the top five recipients of remittances in 2023. The report forecasts a continued recovery and growth in remittances flowing into Pakistan, estimating an increase of about 7.0% to reach $28 billion in 2024 and a further 4.0% increase to about $30 billion in 2025.

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In terms of country-specific data, remittances from Saudi Arabia, the United Arab Emirates (UAE), the United Kingdom, and the United States contributed significantly to the overall figures. Remittances from Saudi Arabia in June 2024 totaled $808.6 million, while UAE remittances amounted to $654.3 million, and those from the United Kingdom stood at $487.4 million. On the other hand, remittances from the European Union and the US experienced slight decreases compared to the previous month.

These remittance inflows play a vital role in supporting households in developing countries, especially those facing economic challenges, as noted by the World Bank. They serve as a crucial source of income for recipient households, contributing to poverty alleviation, improved living standards, and enhanced resilience in the face of economic hardships and adversities.

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