PRIME Minister Shehbaz Sharif has congratulated the nation on record increase in remittances in December 2024 terming it as reflection of strong commitment on the part of Overseas Pakistanis to play a role in the development of the country. According to the State Bank of Pakistan (SBP), the remittances in December stood at $3.1 billion, a 29.3% growth as compared to the same month last year and a 5.6% increase in comparison to November 2024. The SBP added that overall remittances rose 32.8% during the first half of the fiscal year 2024-25, with inflows of $17.8 billion from July to December 2024 compared to $13.4 billion in the last fiscal year’s corresponding period.
The continuous surge in remittances by Overseas Pakistanis is surely a source of satisfaction for the leadership of the country, planners and economic managers in the given economic conditions and the political environment. The trend shows the success of the efforts of the Government to discourage selling and buying of dollars through informal channels and provide incentives to Overseas Pakistanis to opt for official banking channels for remitting money back home. The increase is particularly important in the backdrop of assumptions by some circles that the remittances have already peaked and there might be a reversal in months and years to come. However, a record increase in remittances in December raises hopes the country might be able to cross the mark of $36 billion by the close of the financial year. The increase is also understandable as more and more people are proceeding abroad in search for better jobs and remuneration, especially to the Gulf region, Europe and North America and tighter regulatory controls in the foreign exchange market. Experts are rightly pointing out that many of these workers are sending more money back home to support their families or invest in local businesses, contributing significantly to the nation’s external account. They anticipate that remittances will continue to play a crucial role in stabilizing Pakistan’s economy and supporting its external balance. It is argued that if the current trend continues, remittances might reach $36 billion this fiscal year or possibly even higher, especially with the upcoming holy month of Ramadan, during which remittances historically tend to increase. The joy being expressed by the Prime Minister and different spokespersons of the government becomes understandable as the increase in remittances comes in the wake of a civil disobedience calls given by the founding chairman of the PTI Imran Khan. In the first phase, the PTI leader had urged Overseas Pakistanis not to remit money home to put economic pressure on the Government. As the process of dialogue began between the Government and PTI teams, the former reportedly proposed that the call might be delayed but the party went its own way. Therefore, the Government claims the surge in remittances is a clear indication that Overseas Pakistanis have paid no heed to the appeal for a halt in home remittances and instead sent more than the previous month. However, the PTI insists the impact of the call would be visible in the next two to three months. This means the party intends to continue its efforts to persuade overseas workers, many of whom are thought to be its sympathizers, to strengthen its hands in pressuring the Government for acceptance of its demands. The Government too is likely to harden its stance during negotiations believing that the latest tactics of the PTI has also backfired. Anyhow, we believe, there should be no politics on the economy of the country and instead of making appeals for stoppage of home remittances, Overseas Pakistanis should be encouraged by all parties to contribute to the cause of the country.
