Pakistan saw a significant 11.5 percent month-on-month increase in remittances, according to the State Bank of Pakistan (SBP) report released on Friday. The surge was notably attributed to Saudi Arabia, with Pakistani expatriates sending a total of $2.2 billion in September. By October, this figure rose by $300 million, reaching a total of $2.5 billion.
The SBP reported, “Workers’ remittances recorded an inflow of $2.5 billion during Oct ‘23,” citing a growth of 11.5 percent month-on-month and 9.6 percent year-on-year.
Saudi Arabia played a leading role in this increase, contributing $616.8 million, followed by the United Arab Emirates at $473.9 million, the United Kingdom at $330.2 million, and the United States at $283.3 million.
The enduring cultural, defense, and economic ties between Pakistan and Saudi Arabia have solidified the kingdom’s position as the largest contributor to remittance inflows. Remittances play a crucial role in supporting Pakistan’s external account, particularly amid the ongoing economic crisis marked by currency depreciation and a decline in foreign exchange reserves.
The SBP disclosed recorded inflows of $8.8 billion in the first four months of the fiscal year, which commenced on July 1.