ISLAMABAD: Overseas workers’ remittances to Pakistan increased by 47.6 percent on a year-on-year basis in July 2024, the State Bank of Pakistan reported this week, with Saudi Arabia remaining the top contributor for the South Asian country. 

Remittances bring billions of dollars annually from overseas Pakistanis and are vital to Pakistan’s economy. These inflows bolster foreign exchange reserves, stabilize the balance of payments, and support the Pakistani currency. 

“In terms of growth, during July 2024, remittances increased by 47.6 percent on y/y basis,” the SBP said in a press release on Saturday. 

The central bank disclosed that Saudi Arabia remained the top contributor with $761.1 million in remittances during July 2024, followed by the United Arab Emirates (UAE) from where remittances amounting to $611.1 million were received. 

Workers’ remittances amounting to $443.5 million from the UK were received while from the United States, Pakistan received workers’ remittances of $300.1 million. 

Pakistan and Saudi Arabia have deep cultural, defense and economic ties. The kingdom is home to over two million Pakistanis and for years has remained the largest contributor to remittance inflows.

Remittances play a major role in supporting Pakistan’s external account, especially at a time when the country is recording small gains after a prolonged economic crisis that diminished its foreign exchange reserves and weakened its national currency.