Pakistan Recorded Highest Monthly Remittances in May 2024

Staff Report

In May 2024, Pakistan recorded its highest monthly remittances of US$3.24 billion, up 54.2% year-on-year (YoY) and 15.3% month-on-month (MoM).

For the 11-month period of FY24, foreign remittances have totaled US$27 billion, marking an 8% YoY increase.

On a MoM basis, during May 2024, higher flows were received from the UAE (+23%), UK (+17%), Saudi Arabia (+15%), and EU countries (+14%).

This figure surpasses our expectations, as we projected full-year remittances to be US$28 billion, while Pakistan has already achieved US$27 billion in the first 11 months of FY24. Similarly, the IMF projected foreign remittances of US$28 billion for FY24.

Analysts believe that, with this momentum and growth trajectory, Pakistan can achieve remittances of US$29.5-30 billion for FY24, an 8-10% YoY increase.Pakistan exports and remittances surpass $2b from Italy

Alongside Eid-related inflows (seasonality), higher remittances in May 2024 and the 11-month period of FY24 (+54% YoY and +8% YoY, respectively) can also be attributed to a significant surge in the number of Pakistanis emigrating to other countries over the past two years (2022/2023), averaging 850,000 people compared to an average of 323,000 between 2017-2021.

That said, we believe the higher momentum in remittances is likely to persist due to stability in the PKR/USD exchange rate and expectations of a new IMF program,” Topline Research said in a report.