There is a 9% drop in remittances sent by overseas Pakistanis has seen a down-trend, totaling $2.25 billion from $2.46 in October 2023. This deceleration was attributed partly to the reemergence of volatility in the rupee-dollar exchange rate during the first half of the month and partly to a global economic slowdown.
According to data from the State Bank of Pakistan (SBP), overseas Pakistanis remittances witnessed a 9% decrease, amounting to $2.25 billion in November, compared to $2.46 billion in October. However, this figure marked a 4% improvement from the $2.17 billion received in the same month of the previous year.
Analyzing the first five months (Jul-Nov) of the current fiscal year, remittances showed a 10% dip, totaling $11.05 billion, in contrast to $12.32 billion in the corresponding period last year.
Specifically, inflows from Saudi Arabia decreased by 12% to $540 million in November, compared to $617 million in the prior month. Remittances from the United Arab Emirates (UAE) saw a 14% decline, amounting to $409 million in November, down from $474 million in October. In addition, remittances from European Union member countries decreased by 10% to $268 million, and the United States witnessed an 8% drop to $261 million. Remittances from other countries also decreased by 7% to $429 million.
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The UK was the sole source where remittances improved in November, increasing by 3% to $342 million compared to $330 million in the previous month.
The return of exchange rate volatility in the first two weeks of November prompted the resurgence of illegal Hawala-Hundi network operators in border areas of Afghanistan and the Middle East.
This, coupled with a global economic slowdown, reduced the capacity of overseas Pakistanis to send more money through official channels, contributing to the overall decline in remittances.
