In September 2023, remittances sent by overseas Pakistanis experienced an 11% decline, totaling $2.2 billion, compared to the $2.48 billion recorded in the same month of the previous year. However, on a month-on-month basis, remittances for September 2023 increased by 5% over the $2.09 billion received in August 2023, as reported by the State Bank of Pakistan (SBP).
Breaking down the remittance numbers, the highest inflows originated from Saudi Arabia at $538 million, followed by the United Arab Emirates (UAE) at $400 million, the United Kingdom (UK) at $311 million, European Union (EU) countries at $269 million, and the United States (US) at $263 million.
Year-on-year, remittances from Saudi Arabia decreased by 15%, while inflows from the UAE and the US declined by 16% and 6%, respectively. Conversely, remittances from European Union (EU) countries increased by 4%, while those from the UK saw a 1% rise.
During the first quarter of the fiscal year 2023-24 (1QFY24), total remittances amounted to $6.33 billion, marking a 20% decrease compared to the $7.89 billion received in the same period of the previous fiscal year.
Despite expectations of a substantial increase in remittances for September due to a significant drop in the open market rate of the US Dollar by nearly Rs. 50 during the month, the marginal month-on-month increase does not reflect a significant uptick in inflows.
Pakistan had previously witnessed its highest-ever remittance inflows in April of the previous year, reaching $3.1 billion. However, over the last 12 months, remittances have experienced a significant decline, with inflows surpassing the $2.5 billion mark only once (in March 2023).
In September 2023, Pakistan saw a year-on-year decline of 11% in remittances from overseas Pakistanis, totaling $2.2 billion. However, there was a 5% increase in remittances on a month-on-month basis from August 2023, which provides some relief amid a challenging remittance environment.