Pakistan's remittances at $3 billion mark for third consecutive month

Pakistanis abroad sent $2.96 billion home in July, 48% higher than the same month last year, data released by the State Bank of Pakistan (SBP) showed on Monday.

This is the third consecutive month that the country's remittances have touched the $3 billion mark, mainly due to the exchange rate stability.

However, this figure is 5% lower compared to the previous month when remittances stood at $3.16bn.

Remittances from Saudi Arabia totaled $761 million, reflecting a 56% increase compared to July 2023 but a 6% decline from the previous month. Saudi Arabia's share of total remittances rose to 25%, up from 24% in July 2023.

The United Arab Emirates was the second-largest contributor to remittances in Pakistan, with $611 million sent during July. This represents a 94% increase compared to the same month last year, but a 7% decrease from the previous month's figure.

Meanwhile, Pakistanis in the United Kingdom sent $443 million in remittances, which is 45% higher than July 2023 but 9% lower than the amount sent last month.

Last year, the flow of remittances via official channels had dropped sharply when the Pakistani rupee came under pressure and experienced heavy beating. The PKR fell to a record low of 307 in the interbank market and 333 in the open market, respectively.

While a government crackdown on smuggling and illegal foreign exchange activities brought exchange rate stability last year, the recent domestic foreign currency market's stability can be attributed to the agreement with the International Monetary Fund for a new $7 billion loan program.

The rupee-dollar parity in the interbank has been stable since mid-March where it has moved in the range of 278.10 to 278.50. Meanwhile, in the open market it has been quoted between 278.50 to 280.