Pakistan receives highest-ever remittances in FY25's first quarter

Pakistan's remittances in the first quarter of fiscal year 2024-25 (FY25) were recorded at $8.8 billion, up 39% compared to July-September 2023. This is the highest-ever amount received by the country in the first quarter of a fiscal year.

Data released by the State Bank of Pakistan (SBP) on Wednesday showed that remittances in September expanded by 29% compared to the same month last year, reaching a total of $2.8 billion. Last September, Pakistan had received $2.2 billion.

However, remittances decreased on a month-on-month basis, declining by 3.2% from $2.9 billion received in August.

The latest data shows that the highest amount this September came from Saudi Arabia ($681 million), followed by the UAE ($560m), and the UK ($424m).

Last year, Pakistan's central bank had taken measures to encourage the flow of remittances through official channels, including increasing incentives for exchange companies and stabilizing the spread between the interbank and open markets. Moreover, an influx of workers to countries like Saudi Arabia (7m) and the UAE (4.4m) also led to the increase in money sent to Pakistan.

Home remittances are crucial for supporting the country's external accounts, boosting economic activity in Pakistan, supplementing the disposable incomes of households reliant on them, and reducing the current account deficit.