Multiworks Pakistan: Pakistan received over $30 billion in remittances in FY24, marking a 10.7% increase from the previous year. This substantial rise in Pakistan remittances highlights the growing reliance on funds from overseas Pakistanis, surpassing export earnings.
The State Bank of Pakistan reported that total remittances for FY24 reached $30.3 billion, up from $27.3 billion in FY23. Last month’s inflows alone surged by 44% year-on-year, amounting to $3.2 billion compared to $2.187 billion in June FY23.
The highest remittance inflows came from Saudi Arabia, totaling $7.424 billion, a 13.6% increase from the previous year. The UAE followed with $5.534 billion, reflecting an 18.9% rise. The United Kingdom and the United States contributed $4.521 billion and $3.531 billion, respectively, each growing by about 11%.
Despite the positive trend, experts caution against the economy’s growing dependence on Pakistan remittances, especially if exports decline. Prime Minister Shehbaz Sharif emphasized the need for tough economic measures to secure IMF loans.
Overall, the increase in remittances signals confidence in Pakistan’s economic stability, particularly in exchange rates, with inflows from all major destinations showing significant growth.
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In the long term, the rise in foreign remittances could potentially drive economic growth. However, over-reliance on foreign dollars coming to Pakistan via expats may pose risks if other sectors do not keep pace. Policymakers are encouraged to diversify the economic base to ensure sustainable growth. This sharp increase in Pakistan remittances not only highlights the resilience of overseas Pakistanis but also underscores the need for strategic economic planning. The focus should be on leveraging these remittances for broader economic development. As remittances of Pakistan continue to play a crucial role, maintaining and enhancing this flow will be vital for economic stability.
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