Trend Continues; Remittances from Overseas Pakistanis remain above $2bn

Continuing with the trend, remittances sent home by overseas Pakistanis remain above $2 billion mark for the 6th consecutive month.

As per the State Bank of Pakistan (SBP), workers’ remittances maintained their strong momentum in November, remaining above $2 billion for a record sixth consecutive month. They rose to $2.34 billion, showing an increase of 2.4 percent over the previous month, while compared to the same period last year increased by 28pc.

As per the central bank data during the first five months of FY21, workers’ remittances have reached an unprecedented level of US$ 11.77 billion, 26.9 percent higher than the same period last year.

On average, workers’ remittances have been about half a billion (US$ 499 million) higher in each month of FY21 as compared to the same period last year.

Remittance inflows during the first five months of FY21 have mainly been sourced from Saudi Arabia ($ 3.3 billion), United Arab Emirates ($ 2.4 billion), United Kingdom ($ 1.6 billion) and United States ($ 1.0 billion).

SBP was of the view that this significant growth reflects continued government and SBP efforts to formalize remittances under Pakistan Remittances Initiative (PRI), growing use of digital channels amid limited international travel, orderly exchange market conditions and improved global economic activity.

Despite the COVID-19 pandemic, Pakistan's workers' remittances have managed to post strong growth, back in October home remittances sent by overseas Pakistan amounted to $ 2.3 billion, increasing by 14.1pc compared to October 2019.

Since June the country is receiving over $2 billion in home remittances monthly. In June, remittances amounted to $2.47 billion were arrived, while the country received highest-ever workers' remittances $2.76 billion in July.