Pakistan’s October 2024 Remittances Hit $3.05bn, Reflecting 24% Annual Growth

The State Bank of Pakistan (SBP) released data indicating that the inflow of overseas workers’ remittances into Pakistan was $3.052 billion in October 2024, a significant 24% increase on a year-on-year (YoY) basis compared to $2.463 billion in the same month of the previous year.

The inflow in October was 7% higher than the $2.86 billion in September 2024 on a month-over-month (MoM) basis. Remittances increased by nearly 35% year-over-year to $11.8 billion in 4MFY25, compared to $8.8 billion in 4MFY24.

The increase in inflows is attributed by experts to the stability of the exchange rate, a narrowing disparity between open and inter-bank market rates, an increase in digital payment channels, and a rise in the number of workers relocating abroad, particularly to GCC countries.

In October 2024, the maximum quantity of money was remitted by Pakistanis who were living abroad in Saudi Arabia. They sent $766.7 million during the month. The quantity was 12% higher on a monthly basis and 24% higher than the $616.8 million sent by the expatriates in the same month of the previous year.

The monthly inflows from the United Arab Emirates (UAE) increased by 10%, from $562.7 million in September to $620.9 million in October. In comparison to the $473.9 million reported in the same month last year, remittances increased by 31% annually.

In comparison to the $424.1 million reported in September 2024, remittances from the United Kingdom totaled $429.5 million during the month. This represents a 1% increase. Inflows from the United Kingdom increased by 30% year over year.

In October 2024, remittances from the European Union decreased by 2% month-over-month, reaching $359.1 million from $365.5 million in September. In October 2024, Pakistanis who resided abroad in the United States sent $299.3 million, representing an 8% increase from the previous month.

The incentive structure for banks and Exchange Companies (ECs) was revised by the SBP last month to improve the flow of domestic remittances. Two categories of incentives will be provided to both banks and ECs under the system: Fixed Component Incentives and Variable Component Incentives.

The expansion of digital payment options, a stable exchange rate, a narrowing gap between open market and inter-bank rates, and an increase in workers relocating abroad, particularly to Gulf Cooperation Council (GCC) countries, are all contributing factors to the growth in migrant inflows.