Surge in Remittances: Pakistan's Economic Lifeline Strengthens
Pakistan recorded a significant uptick in remittances, with a 11.3% year-on-year increase in September, totaling USD 3.2 billion. Inflows from Gulf countries primarily drove this growth. However, concerns about sustainability arose as inflows from major corridors like the UK declined despite overall positive trends.
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- Pakistan
Pakistan witnessed a substantial increase in remittances in September, as the nation recorded USD 3.2 billion, marking an 11.3% rise compared to the previous year, sources revealed on Thursday.
The Finance Ministry highlighted that the total inflow of remittances for the first quarter of the current fiscal year reached USD 9.5 billion, surpassing last year's USD 8.8 billion during the same period. These remittances are crucial for household support and stabilizing the country's external accounts.
Driven largely by a 2.6% increase in inflows from Gulf Cooperation Countries, the rise in remittances bolstered overall financial inflows for September. However, remittances from the UK saw a 1.9% month-on-month decline, raising concerns about the sustainability of these external sources. With foreign exchange reserves still under pressure, Pakistan's economic dependence on remittances remains critical.
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