Pakistan has witnessed a significant 44% increase in remittances during the first two months of the fiscal year 2024-25, according to data released by the State Bank of Pakistan. The inflow reached $5.94 billion, up from $4.12 billion in the same period last year.
In August 2024, major contributions came from Saudi Arabia ($713.1 million), the United Arab Emirates ($538.4 million), the United Kingdom ($474.8 million), and the United States ($322.4 million).
The growth rates from these countries were notable, with the UAE showing an 84% increase, Saudi Arabia 51%, the UK 44%, and the US 23.5% compared to the previous year.
Experts attribute this surge to the government's crackdown on illegal money transfer methods like hundi and dollar smuggling. This action has helped stabilize the exchange rate and boost foreign exchange reserves.
The Special Investment Facilitation Council (SIFC) has played a supportive role in this improvement. The increase in remittances is seen as a positive indicator for Pakistan's economy, as these inflows play a crucial role in maintaining the country's foreign exchange reserves.
Financial analysts view this trend as a step towards economic stability and strength, highlighting the importance of remittances in Pakistan's economic landscape.
