Pakistan has witnessed a notable surge in remittance inflows, with a year-on-year increase of 26%, amounting to $2.39 billion in January, as reported by the State Bank. Comparing figures from the same period last year, remittances in January surged from $1.90 billion to $2.39 billion. This upward trend in remittances continued from December 2023 when they totaled $2.38 billion. However, despite the monthly increase, remittances during the first seven months of the current financial year have seen a slight decline of 3%, totaling $15.83 billion, compared to $16.32 billion during the same period last year. Data released by the State Bank highlights Saudi Arabia as the leading source of remittances, contributing $587 million, marking a significant 43% year-on-year increase.

The United Arab Emirates closely follows with a 51% increase, totaling $408 million, while remittances from the UK rose by 9% to $362 million. Similarly, remittances from the US surged by 32% to $283 million. Governor of the State Bank had previously indicated an expected rise in remittances during January-June, attributing it to enhanced remittance services and favorable global economic conditions. This resulted in increased earnings for Pakistanis abroad, encouraging higher remittance transfers. The Governor projected remittances to reach $28 billion for the fiscal year, compared to $27 billion last year.

Credit: Independent News Pakistan (INP)