Qudsia Bano

In a significant development on the economic front, Pakistan received an impressive inflow of US$2.2 billion workers' remittances in September. This surge represents a remarkable 5.3 percent month-on-month growth, showcasing continued trust of expatriates for the homeland, reports WealthPK. According to recent reports, the cumulative workers' remittances for the first quarter (Q1FY24) of FY23-24 have reached an impressive US$6.3 billion. This robust performance not only testifies to the dedication of expatriates but also reflects the positive and stable state of the economy. The remittances received in September had diverse sources, with Saudi Arabia leading the way with a contribution of $538.2 million followed by the UAE with $400 million, the UK with $311.1 million and the United States with $263.4 million. Talking to WealthPK, economist Dr.

Ahmed Faraz from the Pakistan Institute of Development Economics (PIDE) said the surge in remittances was not only vital for the well-being of families and communities in Pakistan but also contributed significantly to the foreign exchange reserves. "This underscores the resilience and commitment of the Pakistani diaspora in continuing to support their homeland, even in the face of global economic challenges. "The government, alongside various financial institutions, acknowledges the substantial role of overseas Pakistanis in boosting the nation's economy. This robust inflow of remittances signifies a positive outlook for Pakistan's economic stability and future growth prospects," he said. "As the country moves forward, it is essential to continue fostering an environment that encourages remittances and investments from abroad, leveraging the dedication of overseas Pakistanis to contribute to the nation's prosperity," he said.

Dr Ahmed further said, "The recent surge in workers' remittances is undoubtedly a positive sign for the nation's economy. This surge highlights the commitment of overseas Pakistanis to their homeland and underscores Pakistan's robust financial resilience, especially when compared to the economic challenges that have plagued the global economy in recent times." Concluding, he said, "One of the most notable aspects of this surge is the diverse set of countries contributing to the remittances. Consistent growth of remittances, both in terms of monthly increases and the cumulative figures for the first quarter of the fiscal year, is a testament to the diaspora's trust in the country's economic prospects. Despite uncertainties on the global economic landscape, the overseas Pakistanis continue to invest in their home country."

Credit: INP-WealthPk