Islamabad: As reported by the State Bank of Pakistan (SBP), overseas workers sent USD 30.3 billion home in the fiscal year 2023–24 (FY24), a 10.7% rise from USD 27.3 billion in FY23. The news was obtained from a July 9 story.
The data indicates that this increase is the result of more money being moved through authorized routes. In June 2024, remittances dropped 3% month-on-month to USD 3.16 billion from USD 3.24 billion in May 2024 but were up 44% from USD 2.2 billion in June 2023.
The increase is attributed to more overseas Pakistanis using regulated money transfer methods due to a stable currency and a crackdown on illegal dollar activities. The government’s efforts to ensure a stable exchange rate and stringent measures against illicit financial practices have encouraged expatriates to rely on formal channels for sending money home. This shift has significantly contributed to the overall rise in remittances.
The World Bank’s “Migration and Development Brief 40” report highlights Pakistan as one of the top five remittance-receiving countries in 2023, with a forecasted growth of 7% to USD 28 billion in 2024 and 4% to USD 30 billion in 2025. The report underscores the importance of remittances for the country’s economy, noting their role in providing a stable source of foreign exchange and supporting economic growth.
According to the World Bank, remittances are essential for sustaining households in developing nations, enhancing living circumstances, and assisting families in their recovery from natural disasters. These funds are often used for essential expenses such as food, healthcare, education, and housing, thereby enhancing the quality of life for recipients. In Pakistan, remittances have also contributed to the reduction of poverty and the promotion of financial inclusion, enabling many families to access financial services and build a better future.
The SBP’s report also indicates that the increased inflow of remittances has had a positive impact on the country’s foreign reserves, providing a buffer against economic shocks and helping to stabilize the national economy. The government and financial institutions continue to promote the use of formal channels for money transfers, offering incentives and facilitating easier access to these services for overseas Pakistanis.
The record remittances in FY24 reflect the resilience and dedication of overseas Pakistanis in supporting their families and contributing to the nation’s economic well-being. The SBP and the government remain committed to creating an enabling environment that encourages the use of official channels for remittances, ensuring that these vital funds continue to flow into the country securely and efficiently.
