Qudsia Bano

December 2023 witnessed a remarkable surge in the workers' remittances, reaching an impressive US$2.4 billion. This surge represents a substantial 13.4% year-on-year growth, reflecting both the dedication of overseas workers and the strategic impact of remittances on the recipient nation’s economy, according to WealthPK. Breaking down the numbers for December 2023, the remittances not only increased by 5.4% on a month-on-month basis but also experienced a robust 13.4% year-on-year growth. This double-digit expansion speaks volumes for the sustained commitment of overseas workers to supporting their families, even amidst the challenges posed by the global economic fluctuations and the post-Covid effects. The cumulative impact of these remittances is highlighted by the fact that the first six months of the Fiscal Year 2024 have witnessed an inflow of US$13.4 billion. Analyzing the geographical sources of these remittances in December 2023 provides a fascinating insight into the global flow of funds. The major contributors to this surge were Saudi Arabia, with a substantial contribution of $577.6 million, followed closely by the United Arab Emirates at $419.2 million. The United Kingdom and the United States contributed $368.0 million and $263.9 million, respectively. Saudi Arabia's significant contribution can be attributed to its large expatriate workforce, many of whom are engaged in crucial sectors such as construction, healthcare, and hospitality.

The vigorous performance of the Saudi economy, despite global challenges, has likely contributed to the increased remittance outflows. Similarly, the United Arab Emirates, a hub for expatriate workers from various countries, has maintained its position as a key source of remittances. The diverse expatriate community in the UAE, engaged in sectors ranging from technology to finance, continues to support their families in their home countries. In an interview with WealthPK, Asim Mustafa, Regional Head at Faysal Bank, said, “The United Kingdom and the United States, with their sizable immigrant populations, have consistently been significant contributors to global remittances.” Asim said that the impact of these remittances extends beyond the monetary figures, playing a crucial role in poverty alleviation, education, and healthcare in recipient nations. Families relying on these funds often channel them into creating small businesses, investing in education, and improving overall living standards. “As we reflect on the impressive surge in remittances for December 2023, it becomes clear that the commitment of the global diaspora to their roots remains unwavering. In the face of economic uncertainties, the enduring support provided by overseas workers through remittances not only sustains families but also contributes significantly to the economic well-being of their home countries,” said Asim.

Credit: INP-WealthPk