Karachi, 10 August 2024 (TDI): Pakistan’s Remittances were recorded at $3 billion, up by 48 percent in July as compared to the same period last year, data released by State Bank of Pakistan has showed.
The data, however, showed a 5 percent decrease in remittances on a month-on-month (MoM) basis.
The 3 billion dollars monthly remittances are attributed to a stable exchange rate, due to a reduction in the current account deficit, a narrowing gap between interbank and open rates, improved foreign inflows, and administrative actions such as cracking down on foreign currency hoarding, illegal dollar trade, and hawala and hundi operators.
SBP data shows that remittances from Saudi Arabia — Pakistan’s largest source of these funds — went up by 56 percent to 761 million dollars in July. Remittances from Pakistani workers in the United Arab Emirates (UAE) reached 611 million dollars in July, marking a significant 94 percent surge, compared with last year.
Furthermore, remittances from the UK to Pakistan totalled 443 million dollars in July, reflecting a 45 percent increase from a year earlier.
The Pakistani diaspora in the US also sent home 300 million dollars in July, representing a 24% rise from July 2023.
Foreign remittances are a major source of financing for Pakistan’s external account, contributing to economic growth and raising the disposable incomes of households that rely on them for subsistence.
