Pakistan Records Highest-Ever Monthly Remittance Inflow of $4.3 Billion in May
Pakistan received $4.3 billion in worker remittances in May 2024, marking the highest monthly inflow in the country's history, according to State Bank of Pakistan data. The inflow increased 20.2% from April and 15.4% year-over-year, with Saudi Arabia and the UAE as the largest sources. Currency experts caution that underlying growth may be weaker than official figures suggest due to concerns about exchange rate management and potential diversion of funds outside official banking channels.
Pakistan's State Bank reported $4.3 billion in remittances for May 2024, representing a record monthly inflow and growth of 20.2% compared to April and 15.4% compared to May 2023. Cumulative remittances for the July-May fiscal year reached $38.1 billion, up 9.2% from the previous year's corresponding period. Saudi Arabia led source countries with $1.025 billion, followed by the UAE at $1.006 billion, with the UK and US contributing $645.5 million and $349.8 million respectively. Government officials project full-year remittances will exceed $41 billion for the first time. However, currency experts express skepticism about the strength of this growth, citing concerns that a managed exchange rate may be driving some remittance flows away from official banking channels, potentially masking weaker underlying demand.
What's missing
The article does not specify which fiscal year the May 2024 data belongs to or clarify the exact dates of 'FY26' in the Pakistani calendar. Additionally, no explanation is provided for why a managed exchange rate would incentivize diversion from official channels, or what evidence supports the experts' claim that growth is weaker than in FY25.
What different sources said
- DawnCenter
May sees 'highest-ever monthly inflow' of workers' remittances at $4.3bn
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