Business

Remittances from overseas Pakistanis surge by 44%

The data showed an increase of $1.813 billion.

Web Desk

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10 Sep 2024

Remittances from overseas Pakistanis jumped by 44 percent in the first two months (July- August) of the fiscal year 2024-25, compared to the same period of the previous year, according to the statistics shared by the State Bank of Pakistan (SBP).

The July receipts showed higher inflows, with a 48 percent increase year-on-year. The country received $2.994 billion but declined to $2.942 billion in August.

Cumulatively, overseas Pakistanis have sent $5.936 billion in inflows during July-August, while inflows in a similar period of the previous year were $4.123 billion.

The data showed an increase of $1.813 billion or 44 percent.

However, the inflows could not assist the cash-strapped country in a deal with the International Monetary Fund (IMF) to unlock a $7 billion bailout programme., but it must be a relief for the government in dire need of dollars for debt servicing of $25 billion in FY25.

The country managed to bring the current account deficit in FY25 to $162 million in July, which was $665 million in FY2024.

However, the government's efforts to control the CAD by restricting imports have slowed the growth to 2.4 percent in FY24.

Experts believe the improvement in remittances will help the government to return the imports to the previous trend.

According to the data, the last two weeks of the first two months of ongoing FY25 showed an increasing trend from the United Arab Emirates (UAE).

The highest inflows were from Saudi Arabia, which rose 50.7 percent. Remittances from the Kingdom increased to $1.473 billion during July-August FY25, compared to the responding year.

The inflows from the UK were $918.3 million (up by 44.4 percent), US $622.4 billion (up 23.5 percent), GCC countries $569.7 million (20.4 percent), and EU countries $726.6 million (up by 26.5 percent).

The government's tough stance against illegal currency businesses such as Hawala Hundi led to a boost in remittances. Following the high inflows, the market showed stability in the exchange rate.