Karachi: In March, workers’ remittances to Pakistan soared to a two-year high of $2.95 billion, contributing to a total of $21 billion in the first nine months of fiscal year 2024. This surge in remittances is attributed to overseas Pakistanis sending higher funds during Ramadan and ahead of the Eid festival.
According to the State Bank of Pakistan (SBP), remittances increased by 31.1% compared to February and by 16.4% compared to March 2023. Tahir Abbas, Head of Research at Arif Habib Limited, noted that March’s inflow of $3 billion aligns with expectations, with many expatriates sending significant amounts during Ramadan for family support and charitable contributions.
Abbas highlighted the return of stability in the rupee-dollar exchange rate, which encouraged more expatriates to use official channels for remittance transfers, reducing reliance on unauthorized channels.
During March 2024, major contributions to remittances came from Saudi Arabia ($703.1 million), the United Arab Emirates ($548.5 million), the United Kingdom ($461.5 million), and the United States of America ($372.5 million).
SBP Governor Jameel Ahmad’s projection of $28 billion in remittances for FY24 may be surpassed, with Abbas suggesting that total remittances could reach close to $30 billion. He mentioned factors such as the Middle East’s improving economic conditions and anticipated sustained healthy inflows, especially leading up to Eidul Azha.
While April may witness a temporary dip in remittances, Abbas anticipates a rebound in May and June, driven by increased remittance flows ahead of Eidul Azha festivities.
