Jul-Nov remittances post 10pc growth YoY

KARACHI: Inflows of home remittances posted a 10 percent growth during the first five months of this fiscal year, supported by the government’s proactive policy measures.

The State Bank of Pakistan (SBP) Monday reported that the workers’ remittances continued their strong growth during this fiscal year and rose by some 9.7 percent or $ 1.14 billion during Jul-Nov of the current fiscal year. Cumulatively, workers’ remittances amounting to $12.9 billion were received during July-Nov of FY22 compared to $11.766 billion in the same period last fiscal year (FY21).

With 25 percent share in overall inflows, Saudi Arabia remained the largest contributor. Overall, some $3.27 billion remittances were received from Saudi Arabia during the first five months of this fiscal year down from $3.33 billion. In addition, $1.306 billion and $1.768 billion inflows arrived from the USA and UK, respectively.

“Proactive policy measures by the government and the SBP to incentivize the use of formal channels and altruistic transfers to Pakistan amid the pandemic have contributed towards the sustained inflows of remittances since last year,” the SBP said.

Remittances: exuberance continues

Month-on-month basis, inflows of home remittances slightly declined by 6.5 percent in November 2021 over October 2021. However, despite some decline, workers’ remittances continued their strong streak of remaining above $2 billion since June 2020.

The country received $2.352 billion of inflows during November 2021 against $2.517 billion in October 2021, depicting a decline of $166 million. In terms of growth, on YoY basis, remittances increased by 0.6 percent in November 2021 compared to November 2020, in which inflows amounted to $2.339 billion were received.

Home remittance inflows during November 2021 were mainly sourced from Saudi Arabia worth $590 million, United Arab Emirates $452.5 million, United Kingdom $305.8 million and the United States of America $237.8 million.

Copyright Business Recorder, 2021