Pakistan achieves record $3.24 billion in remittances in May, 54% yearly increase

Islamabad: The State Bank of Pakistan (SBP) reported on Friday that overseas workers’ remittances increased by a significant 54.2 percent year-on-year (YoY) in May, reaching $3.24 billion compared to $2.1 billion in the same month last year.

As per the details, remittances by overseas Pakistanis hit a record high of $3.243 billion in May 2024, up from $2.103 billion in May 2023, according to data released by the SBP. representing a 54.2 percent year-over-year increase from a billion dollars. The main reason for this increase is the arrival of Eid ul Azha and a strong rupee.

Compared to April 2024, inflows increased by 15.3% to $2.813 billion. In the first 11 months of FY24, remittances totaled $27.093 billion, up 7.7 percent from $25.146 billion during the same period last fiscal year.

Mohammad Sohail, CEO of Topline Securities, attributed the increase to the arrival of Eid and currency stability. “We believe year-on-year growth in remittances will remain strong in the coming months, driven by currency stabilisation and expectations of a new International Monetary Fund (IMF) programme,” he added.

Saudi Arabia sent $819.3 million in May 2024, up 15 percent month-on-month and up 56.4 percent year-on-year.

Inflows from the United Arab Emirates (UAE) rose to $668.5 million in May from $542.5 million in April, a significant month-on-month increase. Year-on-year, remittances from the UAE almost doubled, rising 99.1% from $335.8 million in May 2023.

Remittances from the United Kingdom (UK) were $473.2 million in May, up 54.4 percent from $306.4 million in May 2023.

From the European Union (EU), remittances rose 36.4 percent year-on-year to $340 million in May 2024, up 14.1 percent month-on-month.

In the United States, overseas Pakistanis sent $359.5 million in May 2024, reflecting a 39.7 percent year-over-year increase and a 9 percent increase over the previous month.

Home remittances play an important role in supporting Pakistan’s external account, stimulating economic activity, and increasing the disposable income of households that are dependent on these funds.