FY23-24 sees 10.7 percent growth in remittances, numbers grow to $30 billion

KARACHI: Pakistan received over $30 billion in remittances in FY23-24, showing growth of 10.7 per cent since the last fiscal year, while inflows for last month increased by 44pc year-on-year, the State Bank reported on Tuesday.

The country received almost $3bn more than last year, however it failed to meet the record inflows of $31.3bn in FY21-22. The growth in remittances has already exceeded the earnings from exports, showing the increasing dependence of the economy on overseas Pakistanis.

According to the State Bank, total remittances for FY23-24 were $30.3bn, compared to $27.3bn in FY22-23. Financial experts said the growth is satisfactory for the government since it follows another encouraging report that the current account deficit had reduced to $464 million during the first 11 months of FY23-24 (July 2023 to May 2024).

However, financial experts warned the economy’s growing dependence on remittances could be disastrous, especially if export numbers start declining.