June 07, 2024 (MLN): Workers' remittances have increased by 54.2% YoY in May to $3.24 billion, compared to $2.1bn in the same month of last year, the latest data issued by SBP revealed today.
This is the highest-ever monthly inflow in Pakistan’s history.
Similarly, on a monthly basis, workers' remittances rose 15.3% MoM as compared to $2.81bn in the previous month.
On a cumulative basis, in 11MFY24, the total remittances stood at $27.09bn as compared to $25.15bn worth of inflows received in 11MFY23, depicting a rise of 7.75% YoY.
During the month, Saudi Arabia held the top spot, contributing $819.28 million. This figure was up 56.4% compared to a year ago.
The second biggest inflow was from UAE as they sent $668.48m during May, up 99.0% YoY.
Pakistanis working in U.K. sent $473.22m during the month, up 54.4% compared to the same month of last year.
Moreover, the inflows from USA clocked in at $359.55m, which were up 39.8% YoY.
The data further shows that remittances sent by Pakistanis working in EU Countries rose by 36.4% YoY to $339.99m.
Explanatory Note
When migrants send home part of their earnings in the form of either cash or goods to support their families, these transfers are known as workers’ remittances.
Workers’ remittances are one of the major sources of foreign exchange earnings for Pakistan.
"For many countries, money transfers from citizens working abroad are a lifeline for development," says Dilip Ratha of the World Bank.
These inflows have financed Pakistan’s trade and primary income deficit significantly over the last half century.
