US Expatriate Remittances Increase 23% to $322 Million in August 2024
Strong Growth Driven by Increased Overseas Employment and Stable Currency
Pakistan saw a notable rise in workers’ remittances from its Overseas Citizens, reaching nearly $3 billion—a 40.5% increase from the previous year. This surge is attributed to a stable Pakistani rupee against the dollar and an increase in overseas employment, particularly in the Middle East.
According to the State Bank of Pakistan (SBP), remittance inflows in August 2024 were $2.94 billion, up from $2.09 billion in August 2023, although this is a slight decrease from $2.99 billion in July 2024. For the first two months of the fiscal year (July-August 2024), remittances have surged by 44% to $5.94 billion compared to the same period last year.
Tahir Abbas, Head of Research at Arif Habib Limited (AHL), noted that much of the increase in remittances is from the Middle East, particularly Saudi Arabia and the UAE, where many Pakistanis have recently found employment. Abbas downplayed concerns about the impact of falling international oil prices on remittances, suggesting that the current decline in oil prices is a normalization rather than a severe drop.
Overseas Pakistanis: Expedited Passport Issuance
He explained that oil prices below $70 per barrel are unlikely to destabilize remittance flows from oil-dependent countries like Saudi Arabia and the UAE. However, if prices were to fall below $50 per barrel, it could negatively impact remittances, though such a scenario is not currently anticipated.
In August 2024, workers’ remittances from overseas Pakistanis in Saudi Arabia surged by 45% to $713 million, up from $491 million in the same month last year. Similarly, remittances from the UAE experienced substantial growth, rising 75% year-on-year to $538 million, compared to $308 million in August 2023.
Pakistan Witnesses 54.2% Surge in Overseas Remittances in May
non-resident Pakistanis in the United Kingdom sent $475 million in remittances, representing a 44% increase from $330 million in the same month of 2023. Remittances from European Union (EU) countries grew by 29% to $376 million, up from $291 million last year. Expatriates in the United States contributed $322 million, marking a 23% rise from $263 million the previous year. Additionally, remittances from other Gulf Cooperation Council (GCC) countries reached $281 million, reflecting a 29% increase from $218 million in August 2023.
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