Overseas workers’ remittances to Pakistan reached $2.849 billion in September, marking a significant 29% increase compared to the same month last year. On a month-on-month basis, September’s inflow was 3% lower than August 2024. The total remittances during 3MFY25 surged by nearly 39% year-on-year to $8.8 billion, up from $6.3 billion in 3MFY24.
Experts attribute the rise in inflows to the stability of the PKR exchange rate, a narrowing gap between open and interbank market rates, and an increase in the number of workers relocating abroad. Mohammed Sohail, CEO of Topline Securities, noted that these stronger inflows will aid Pakistan in maintaining PKR stability and controlling the current account deficit.
Home remittances play a crucial role in supporting Pakistan’s external account, stimulating economic activity, and supplementing the disposable incomes of remittance-dependent households. The breakdown of remittances shows that overseas Pakistanis in Saudi Arabia remitted the largest amount in September 2024, sending $681.3 million during the month.
In an effort to enhance the flow of home remittances, the State Bank of Pakistan (SBP) revamped the incentive structure for banks and Exchange Companies (ECs). Under the new system, both banks and ECs will receive fixed and variable component incentives to encourage the inflow of remittances.
