In August 2024, workers’ remittances from overseas Pakistanis remained robust at nearly $3 billion, reflecting a substantial 40.5% increase compared to last year.

This growth is attributed to the stable value of the rupee against the dollar and a rise in overseas employment, especially in the Middle East, enabling more expatriates to support their families back home.

According to data from the State Bank of Pakistan (SBP), remittance inflows reached $2.94 billion in August 2024, up from $2.09 billion in August 2023, although there was a slight decline from $2.99 billion in July 2024. Altogether, remittances surged by 44% to $5.94 billion in the first two months of the current fiscal year (July-August) compared to the same period last year.

The average monthly inflow of nearly $3 billion during the initial two months of FY25 is significantly higher than the full-year average of $2.68 billion per month in FY24, indicating potential for continued growth.

The Head of Research at Arif Habib Limited (AHL), Tahir Abbas, noted that much of the increase in remittances came from Middle Eastern countries, particularly Saudi Arabia and the UAE, where many Pakistanis have recently secured employment.

He downplayed concerns regarding the effect of falling international oil prices on remittance inflows, arguing that the current decline is more of a normalization rather than a sharp drop.

Abbas explained that oil prices below $70 per barrel do not significantly threaten remittance inflows from oil-dependent nations like Saudi Arabia and the UAE, which are vital sources of remittances for Pakistan.

“Even if oil prices briefly dip below $60 per barrel, it would not destabilise remittance inflows. However, if prices were to fall below $50 per barrel, it could hurt receipts, though such a scenario is not foreseen at present,” Abbas explained.

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In August 2024, workers’ remittances from overseas Pakistanis in Saudi Arabia surged by 45% to $713 million, up from $491 million in the same month last year. Similarly, remittances from the UAE experienced substantial growth, rising 75% year-on-year to $538 million, compared to $308 million in August 2023.

Non-resident Pakistanis in the United Kingdom sent $475 million, marking a 44% increase from $330 million in August 2023. Inflows from European Union (EU) countries rose by 29% to $376 million, up from $291 million. Expatriates in the United States contributed $322 million, a 23% increase from $263 million in the previous year. Additionally, remittances from other Gulf Cooperation Council (GCC) countries reached $281 million, reflecting a 29% rise from $218 million in the same month last year.

Furthermore, non-resident Pakistanis from other regions remitted $237 million in August 2024, which is a 42% increase compared to $167 million sent during the same period last year.