KARACHI: Inflows of workers’ remittances remained over $ 2 billion for the fifth consecutive month in October 2020.
According to the State Bank of Pakistan (SBP), workers’ remittances continued to post strong growth, increasing by 26.5 percent during the first four months of this fiscal year (FY21). Overseas Pakistanis remitted some $ 9.431 billion during July-October of FY21 compared to $7.454 billion in the same period of last fiscal year (FY20), depicting an increase of $1.977 billion.
“Improvements in Pakistan’s foreign exchange market structure and its dynamics, efforts under the Pakistan Remittances Initiative (PRI) to formalize the flows and limited cross-border travelling contributed to the growth in remittances,” SBP said.
Month-on-month basis, inflows of workers’ remittances remained above $2 billion for the fifth consecutive month in October. Pakistan received home remittances amounting to $ 2.3 billion during October 2020. Remittances increased by 14.1 percent compared to October 2019, in which $2 billion were arrived.
The detailed analysis showed that a large part of year on year increase was sourced from three major corridors including Saudi Arabia, United States and United Kingdom.
Inflows of home remittances from Saudi Arabia surged by 29 percent to $2.715 billion in July-Oct of FY21 up from $2.106 billion in same period of last fiscal year.
During the period under review, worker’s remittances from UK posted 56 percent growth and reached $1.264 billion level. Home remittances from US rose by 55 percent to $816 million in the first four months of this fiscal year.
Sizeable amount of workers' remittances were also received from UAE amounted to $ 1.925 billion, GCC countries $ 1.057 billion and EU countries $804 million in July-Oct of this fiscal year.
Pakistan is receiving over $2 billion inflows monthly since June 2020. While, the country received highest-ever workers’ remittances amounted to $2.76 billion during the first month (July) of this fiscal year (FY21).
Copyright Business Recorder, 2020