KARACHI: While worker remittances increased 34% over the first five months of the current fiscal year (FY25) (July-November), they decreased last month when compared to the previous month.
According to the State Bank’s most recent figures released on Monday, remittances may surpass the $35 billion government-set goal for the current fiscal year.
The State Bank reports that from July to November of FY25, Pakistanis living abroad sent $14.76 billion, a 33.6 percent increase over the $11.05 billion sent during the same time in the previous fiscal year (FY24).
The crackdown on illicit currency enterprises like Hundi and Hawala is undoubtedly the cause of the dramatic surge.
Inflows increase 34% to $14.7 billion in 5MFY25.
In Karachi on Saturday, Finance Minister Mohammad Aurangzeb stated that the government anticipates receiving roughly $35 billion in remittances in FY25.
In FY24, remittances came to $30.25 billion.
The monthly breakdown of remittances reveals a 4.55% decline, down from $3.05 billion in October to $2.91 billion last month. However, the inflow for November increased by 29.1% on an annual basis. The government received $3.7 billion more in remittances during the first five months of this fiscal year than it did during the same time previous year. The increase in remittances helped maintain supply and demand equilibrium and stabilized the exchange rate.
Maximum inflow
Subsequent examination reveals that the greatest sum, $3.63 billion, was received from Saudi Arabia between July and November 25. This is a 36.5 percent increase year over year.
The UAE contributed $2.95 billion, the second-highest inflow. The greatest annual growth, 54.6%, was observed in this head. The third-largest inflow was $2.18 billion from the United Kingdom.
Throughout the current fiscal year, inflows from all locations are trending upward.
Other significant inflows included $1.77 billion from EU nations. This head was more than the United States and Gulf Cooperation Council (GCC) inflows.
Since the Middle East accounts for over half of all remittances, some currency experts have voiced concerns about the shifting political landscape in the region.
Saudi Arabia, the United Arab Emirates, and other GCC nations accounted for 55% of all inflows from July to November of FY25.
A currency expert warned that any political shift in these nations could negatively impact Pakistan’s inflows.
