Overseas Pakistanis have achieved a new milestone
by sending $8.8 billion in remittances during
the first quarter of the current fiscal year
Business Reporter
Islamabad: Overseas Pakistanis have achieved a new milestone by sending $8.8 billion in remittances during the first quarter of the current fiscal year, providing a crucial boost to Pakistan’s economy. These inflows exceeded expectations, surpassing even the funds secured through Pakistan’s recent IMF agreement.
According to the State Bank of Pakistan (SBP), workers’ remittances for September 2024 hit an all-time high of $2.85 billion, marking the largest monthly remittance ever received. The first quarter of FY2024 saw a 29% increase in remittances compared to the previous month and a staggering 49% rise year-on-year.
Regional Contributions to Record Remittances
In the first three months, Pakistanis living in Saudi Arabia contributed $2.15 billion, while those in the UAE sent $1.7 billion. UK-based Pakistanis remitted $1.34 billion, and those residing in the European Union sent $1.09 billion. Additionally, Pakistanis in the U.S. contributed $890 million, and remittances from other Gulf countries totaled $860 million.
Economic Impact
This sharp rise in remittances is expected to support Pakistan in achieving a current account surplus and stabilizing the Pakistani rupee. Economic experts view these record inflows as a testament to the resilience and commitment of overseas Pakistanis in supporting their homeland during challenging times.
Notably, these remittances exceeded the funds from the $7 billion loan recently approved by the IMF. Prime Minister Shehbaz Sharif praised the IMF deal, expressing gratitude to IMF Managing Director Kristalina Georgieva for her support during negotiations.
