Remittances surged by 29% year-on-year (YoY) to $2.849 billion in September, up from $2.208 billion in the same month last year, largely due to the stability of the rupee and an increasing number of overseas workers, according to data from the State Bank of Pakistan (SBP) released on Wednesday.
However, on a month-on-month basis, inflows declined by 3%, falling from $2.943 billion in August 2024.
For the first quarter of FY25, total remittances reached $8.8 billion, reflecting a significant 39% increase compared to $6.3 billion during the same period last fiscal year.
Brokerage Arif Habib Ltd (AHL) highlighted that Pakistan achieved its highest-ever quarterly remittances in 1QFY25.
According to AHL, this increase was driven by the stability of the rupee exchange rate, a narrowing gap between open market and interbank rates, and a rise in the number of workers moving abroad. A breakdown of the data revealed that Pakistanis in Saudi Arabia sent the largest remittances in September 2024, amounting to $681.3 million. While this represented a 4% decline from the previous month, it marked a 27% increase from $538.3 million in the same month last year.
Remittances from the United Arab Emirates (UAE) increased by 4% month-on-month, reaching $560.3 million, up from $538.4 million in August. Compared to the previous year, remittances from the UAE surged by 40%, rising from $399.8 million in September 2023.
From the United Kingdom, remittances totaled $423.6 million, showing an 11% decrease from August’s $474.8 million, but a year-on-year increase of 36%.
In the European Union, remittances fell by 3% month-on-month to $365.3 million in September.
Meanwhile, Pakistani expatriates in the United States sent $274.9 million, a 15% decline compared to the previous month.
Mohammed Sohail, CEO of Topline Securities, remarked in a post on X that these robust inflows would support the stability of the rupee and help manage the current account deficit.
