KARACHI: Inflows of workers' remittances remained strong and posted a significant growth of over 24 percent during August 2020. According to statistics released by State Bank of Pakistan (SBP), in August, workers' remittances remained above $2 billion for the third month in a row. Home remittances sent by overseas Pakistanis were amounted to $ 2.095 billion during August 2020, which is 24.4 percent or $411 million higher than during the same month last year, in which $1.684 billion were arrived.
The SBP said that growth and arrival of home remittances is largely in line with SBP projections. Efforts under the Pakistan Remittances Initiative (PRI) and the gradual re-opening of businesses in major host countries such as Middle East, Europe and United States contributed to this increase, it added.
However, Month on Months basis, remittances were 24.3 percent lower than the record level of remittances of $ 2.768 billion posted in July 2020, mainly reflecting the usual seasonal decline in the post Eid-al-Adha period.
Overall workers' remittances were mounted up by 31 percent during the first two months of this fiscal year (FY21). Overseas Pakistanis remitted some $4.863 billion in July-Aug of FY21 compared to $ 3.712 billion in some period of last fiscal year (FY20), depicting an increase of $1.151 billion.
Pakistan is receiving home remittances inflows above $2 billion since June 2020. Over the last three months, remittances reached an unprecedented level of $7.3 billion, some 37.2 percent higher than the same period last year.
Among three major corridors, Saudi Arabia is the major contributor with 29 percent share in overall inflows of home remittances during the first two months of FY21. Inflows from Saudi Arabia surged by 36 percent to $1.414 billion in July-August of FY21 compared to $1.04 billion in same period of last fiscal year.
Worker's remittances from UK posted 75 percent growth to reach at $696 million. In addition, inflows from US surged by 67 percent to $452 million in the first two month of this fiscal year.
It may be mentioned here that SBP claimed that orderly exchange rate conditions and policy steps taken by the State Bank and the Federal Government under the Pakistan Remittance Initiative have provided support to home remittances.
Some steps also include reducing the threshold for eligible transactions from USD 200 to USD 100 under the Reimbursement of Telegraphic Transfer (TT) Charges Scheme, an increased push towards adoption of digital channels, and targeted marketing campaigns to promote formal channels for sending remittances.
Copyright Business Recorder, 2020
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