In December 2024, remittances to Pakistan reached $3.08 billion, reflecting an impressive 29.3 percent year-on-year growth. Saudi Arabia led this surge, contributing $771 million—a 33.4 percent increase compared to December 2023—followed by the United Arab Emirates (UAE) with $631 million, showcasing an exceptional 53.6 percent rise. The United Kingdom also played a significant role, sending $457 million, marking a 24.2 percent growth from the previous year. According to the United Nations Department of Economic and Social Affairs, Pakistan ranks 7th globally in terms of the size of its diaspora.  During the first half of the fiscal year 2024-25 (July to December 2024), total remittances surged to $17.8 billion, reflecting a robust 32.8 percent increase compared to the $13.4 billion recorded during the same period of the previous fiscal year. This significant growth highlights the strengthening of formal channels for remittance inflows.  It is believed that remittances have a potential to grow to $60bn a year if illegal currency trade is stemmed and customs controls strengthened against under-invoicing of imports by major traders from China, Dubai and elsewhere.        Higher remittance inflows have undoubtedly bolstered Pakistan’s foreign exchange reserves and provided relief to its economic challenges. However, overreliance on remittances can hinder long-term economic stability and growth. Dependence on external inflows exposes the economy to global shocks and often leads to brain drain and reduced focus on developing domestic industries.  (ICE ISLAMABAD)

Fonte notizia: business recorder