Pakistan's Workers' Remittances Soar to $3.1 Billion in December 2024 , Boosting H1FY25 Totals to $17.8 Billion
- Abeera Marium Siddiqui
- January 10, 2025
- 3:27 pm
- 34
- Business
Pakistan’s workers’ remittances for December 2024 soared to $3.1 billion, showing a 29.3% year-on-year growth and a 5.6% increase compared to November, according to the State Bank of Pakistan (SBP). This strong performance pushed the cumulative remittances for the first half of FY25 (July-December) to $17.8 billion, a remarkable 32.8% jump from $13.4 billion recorded during the same period in FY24.
Saudi Arabia Leads the Surge
Among all countries, Saudi Arabia contributed the highest remittance inflows in December 2024. Overseas workers sent $770.6 million, which represented a 6% rise from November and an impressive 33% increase compared to December 2023. This significant growth underscores the vital role Saudi Arabia plays in supporting Pakistan’s remittance inflows.
UAE and European Union Show Strong Growth
The United Arab Emirates followed closely, with inflows climbing to $631.5 million. This reflected a 2% month-on-month rise and an astounding 51% increase compared to the same month last year. Similarly, remittances from the European Union saw steady improvement, totaling $360.3 million in December. This marked an 11% increase from November, further strengthening the upward trend in remittances.
United Kingdom and United States Show Mixed Results
Remittances from the United Kingdom reached $456.9 million, growing 11% from the previous month and 24% compared to December 2023. In contrast, inflows from the United States declined slightly, slipping 1% month-on-month to $284.3 million. Despite this small dip, the overall remittance trend remains positive for the fiscal year.
Broader Economic Context
While December showed significant growth, the trends during the first half of FY25 presented a mixed picture. Inflows from the UAE reached $2.328 billion during H1FY25, but this marked a 10.9% decline from the previous year. Similarly, Saudi Arabia contributed $3.054 billion over six months, reflecting an 8.9% year-on-year decrease. On the other hand, remittances from the European Union stood out with an 8.5% increase compared to H1FY24, providing a much-needed boost to the overall remittance figures.
Pakistan continues to benefit from efforts to stabilize the exchange rate and crack down on illegal foreign exchange activities. These measures have supported the recovery in remittances, which play a critical role in strengthening foreign exchange reserves and addressing economic challenges.
