Pakistan saw remittances inflows of more than $3 billion in October — marking the first time they crossed this mark in fiscal year 2024-25 (FY25) — as rupee stability incentivized overseas Pakistanis to send more of their earnings through formal channels.

According to State Bank data shared on Friday, remittances recorded an inflow of $ 3.1 billion during October. In terms of growth, remittances increased by 6.7% and 23.9% compared to September and October 2023, respectively.

Remittances inflows during October were mainly sourced from Saudi Arabia ($766.7 million), United Arab Emirates ($620.9 million), United Kingdom ($429.5 million) and United States of America ($299.3 million).

The domestic currency has been stable since March this year in both the interbank and open markets. The Pakistani rupee has been moving in a range of 277-278 in the interbank market and 279-280 in the open market.

The rupee stability is primarily attributed to timely rollovers and the International Monetary Fund (IMF) giving approval of a new $7 billion package alongside a steady rise in foreign exchange reserves.

The State Bank of Pakistan’s foreign exchange reserves have reached $11.1 billion, covering two months of imports. The central bank expects foreign exchange reserves by the end of this fiscal year to be in excess of $13 billion.

Total remittances in four months of the current fiscal year amount to $11.8 billion, showing a growth of 35% over $8.4 billion inflows during the same period last year.

The highest amounts were received from the United Arab Emirates and Saudi Arabia, fetching 44% of the total remittances. Some $2.9 billion arrived from Saudi Arabia and $2.3 billion from the UAE.