Workers’ remittances record inflow of $3.2 billion in May

Remittances increased by 15.3 percent on month on month basis and 54.2 percent on year on year basis

ISLAMABAD   -   Workers’ remittances recorded an inflow of $3.2 billion during May 24, which would further improve the current account balance of the country.

According to the State Bank of Pakistan, in terms of growth, during the month under review, remittances increased by 15.3 percent on month on month basis and 54.2 percent on year on year basis. Cumulatively, with inflow of $27.1 billion workers’ remittances increased by 7.7 percent during the first eleven months of FY24 compared to the same period last year.

Overseas Pakistanis in Saudi Arabia have remitted the largest amount in May 2024 as they sent $819.3 million during the month. The amount increased by 15% MoM and 56.4% YoY. Inflows from the United Arab Emirates (UAE) rose on a monthly basis, from $542.5 million in April to $668.5 million in May. On a yearly basis, the remittances registered an increase of 99.1%, as compared to $335.8 million reported in the same month last year.

Remittances from the United Kingdom (UK) amounted to $473.2 million during May, an increase of 54.4% as compared to $306.4 million in the same month the previous year. Remittances from the European Union (EU) surged 36.4% on a yearly basis as they amounted to $340 million in May 2024. On a monthly basis, they were up 14.1%. Overseas Pakistanis in the US sent $359.5 million in May 2024, a YoY increase of 39.7% while jumping by 9% on a monthly basis. Experts believed that inflows might further increase in next few months. The current healthy growth is due to Eid. The massive inflows would further improve the balance of payments situation. The ministry of finance has already projected that exports and imports along with remittances will continue to observe their trend and current account for FY2024 will remain stable – signaling improved BoP and foreign exchange reserves.

It stated that April BoP data demonstrates that exports of goods and services increased significantly by 22.0 percent on YoY basis while it increased marginally by 1.6 percent on MoM basis. On the other hand, imports of goods and services have also increased considerably by 21.5 percent on YoY basis while it decreased by 2.7 percent on MoM basis. Resultantly, trade deficit of goods and services widened by 20.6 percent on YoY basis whereas, it decreased by 9.0 percent on MoM basis. Other factors which favored current account surplus of $0.5b are improved primary income balance and worker remittances.

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