Remittances from foreign workers would amount to $36 billion during the present fiscal year, fueled by buoyant inflows from UAE, Saudi Arabia, and the UK.
Forecasts suggest that foreign worker remittances will cross $36 billion during this fiscal year. According to ProPakistani, based on central bank data, remittances from workers increased by 35 percent YoY to $11.8 billion in the first four months of the fiscal year 2024-25. According to Topline Securities, such growth was led by strong inflows from UAE, Saudi Arabia, and UK markets by 56 percent, 37 percent, and 39 percent, respectively. High momentum is attributed to PKR stability and manpower export in the last 2-3 years. Estimates then point out new highs of conductor remittances ranging at $35-$36 billion during FY25, possibly 16 percent higher than the previous year.
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Among the numbers, it is Saudi Arabia constituted the highest inflow of $766.7 million, followed by the UAE with $620.9 million, the UK with $429.5 million, EU countries with $359.1 million, and finally, the US with $299.3 million. This very figure gives an idea of the most critical role remittances play in propping up the economy of Pakistan. The rising remittance thus lends credibility to the country’s financial system by proving the confidence of overseas workers in its economy and augmenting the nation’s economic stability.
Conclusion: The forecasted rise in foreign worker remittances would amount to $36 billion, qualifying the imports made from abroad into the country through these remittances, confirming their critical role in propelling the economy of Pakistan. Key markets, primarily UAE, Saudi, and UK, would be critical in maintaining the growth momentum.