The State Bank of Pakistan (SBP) revealed that the inflow of overseas workers’ remittances reached $2.4 billion in December 2023, marking a notable 5.4 per cent increase from the previous month’s $2.25 billion, according to data released on Wednesday.
On a yearly basis, December’s remittances exhibited a robust growth of 13.4 per cent, totaling $2.1 billion compared to the same period in the previous year.
These remittances continue to play a pivotal role in sustaining Pakistan’s external account, fostering economic activity, and supporting the disposable incomes of remittance-dependent households.
Despite the December upswing, the cumulative workers’ remittances for July-December FY24 recorded a decline of 6.8 per cent Year-on-Year (YoY), amounting to $13.43 billion.
This decrease amounted to $982.8 million compared to the $14.42 billion reported in the corresponding period of FY23.
Saudi Arabia
Overseas Pakistanis in Saudi Arabia led the remittance surge in December, contributing $577.6 million. This figure marked a 6 per cent increase from the previous month and over 9 per cent higher than the same month in the previous year.
United Arab Emirates (UAE)
Remittances from the UAE witnessed a marginal monthly increase of nearly 2 per cent, rising from $411.8 million in November to $419.2 million in December. Year-on-year, these remittances surged by almost 27 per cent.
United Kingdom (UK)
December saw an uptick in remittances from the United Kingdom, totaling $368 million—a 7.5 per cent increase compared to November 2023.
European Union (EU)
Remittances from the European Union demonstrated substantial growth, rising by 19 per cent YoY and 6 per cent on a monthly basis, reaching $284.9 million in December 2023.
United States (US)
Overseas Pakistanis in the United States sent $263.9 million in December 2023, reflecting an 8.5 per cent YoY increase.
This breakdown underscores the significance of remittances from various regions, contributing to Pakistan’s economic resilience amid global challenges.
The upward trajectory in December bodes well for the nation’s economic prospects as it navigates through the fiscal year.
