In January 2024, remittances from overseas workers to Pakistan reached $2.4 billion, marking a 1% increase compared to December 2023's $2.38 billion, according to data released by the State Bank of Pakistan (SBP) on Monday.
This latest data also indicates a notable year-on-year surge of 26%, with January 2024's remittance flow standing at $1.9 billion, as opposed to $1.52 billion in January of the previous year.
The monthly influx of remittances plays a vital role in bolstering Pakistan's external account, stimulating economic activity domestically, and enhancing the disposable incomes of households reliant on remittances.
Despite the uptick in January, cumulative workers' remittances for July-January FY24 totaled $15.83 billion, reflecting a 3% year-on-year decrease or a reduction of $386 million compared to the same period in FY23.
Breaking down the figures, expatriates in Saudi Arabia led the remittance flow in January 2024, sending $587.3 million, marking a 2% increase from the previous month and a significant 43% surge compared to January of the previous year.
In contrast, remittances from the United Arab Emirates (UAE) experienced a slight month-on-month decline but witnessed a notable year-on-year increase of nearly 51%.
Remittances from the United Kingdom decreased by 2% to $362.1 million in January 2024 compared to December 2023.
Meanwhile, remittances from the European Union showed positive trends, with a 20% year-on-year increase and a 2% monthly improvement, totaling $290.1 million in January 2024.
Remittances from the United States surged to $283.4 million in January 2024, marking a substantial year-on-year increase of 32% compared to the same month the previous year.