Foreign remittances to Pakistan touch almost $3 billion during August

Pakistan has received a whopping $713.1 million in remittances from Saudi Arabia in August 2024, up 45.2%; while remittances from United Arab Emirates (UAE) stood at $538.3 million, an increase of 74.6%, numbers issued by State Bank of Pakistan suggest.

Saudi Arabia, a country of 32.2 million people, is home to a large community of expatriate workers. In recent years, the kingdom has stepped up efforts to regulate its labor market and make it more stable, competitive and attractive to skilled workers.

Overall, workers' remittances increased by 40.5% in August to $2.94 billion, compared to $2.09 billion in the same month last year. On sequential basis, remittances fell 1.7% against $2.99 billion received in July 2024.

In the first two months of the current fiscal year, total overseas workers’ remittances stood at $5.94 billion, up 44% compared to $4.12 billion in the corresponding period last year.

Pakistani workers in United Kingdom (UK) sent home $474.8 million (+44%), workers in European Union sent home $375.8 million (+22.7%), and remittances from USA surged 29.2% to $322.4 million in August, 2024.

Inflow of overseas workers' remittances came at $30.3 billion in FY24, 10.7% higher compared to $27.3 billion in FY23.

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. Remittances also help narrow the current account deficit.