The inflows of home remittances witnessed slowdown and posted a slight decline of 2.37 percent during the first half (July-Dec) of this fiscal year (FY17). Overseas Pakistani workers have remitted $9.458 billion in first six months of FY17, compared to $9.688 billion during the same period in the preceding year, depicting a decline of $230 million.
During December 2016, the inflows of workers' remittances were amounted to $1.584 million, which is 1.2 percent lower than November 2016, in which the country received home remittances inflows amounted to $1.616 billion. The analysts revealed that major decline was witnessed in the inflows from US and UK. Home remittances from US fell 11 percent or $142 million to $1.163 billion in the first half of this fiscal year compared to $1.305 billion in same period of last fiscal year. Similarly, inflows from UK decreased 12 percent to $1.094 billion in July-December of FY17 as against $1.251 billion in corresponding period of last fiscal year. Inflow from Saudi Arabia stood $2.735 billion in first half of this fiscal year compared to $2.895 billion in same period of last fiscal year.
The SBP in its recent report pointed out that the twin factors of low international oil prices and the tightening of US-backed anti-money laundering/anti-terrorist financing (AML/ATF) laws for global correspondent banking, have affected remittance flows to a wide range of countries. In October 2016, the World Bank forecasted remittances to South Asia to decline 2.3 percent for 2016, after growing 1.6 percent in 2015.