Remittances decline 14.9% month-on-month, amount to $2.14bn in Jan

Remittances from overseas workers declined 14.9% month-on-month in January 2022, amounting to $2.14 billion, said the State Bank of Pakistan (SBP) on Friday.

This is the lowest monthly remittance figure since August 2020.

"At $2.14 billion in January 2022, workers’ remittances remained above $2 billion for the 20th consecutive month," said the SBP. "Remittances declined 5% compared to January 2021, partly reflecting an easing of travel restrictions.

"Compared to the previous month, they fell by 14.9% due to seasonality."

Remittance inflow during December 2021 stood at $2.5 billion.

However, during the 7 months of FY22 (July-January), remittances have risen to a record $18 billion, 9.1% higher than the same period last year, added the central bank.

Remittance inflows during January 2022 were mainly sourced from Saudi Arabia ($540 million), United Arab Emirates ($374 million), United Kingdom ($320 million) and United States of America ($208 million), data showed.

Pakistan heavily relies on remittance inflows to boost its foreign currency reserves that remain under pressure due to a high current account deficit, imports and external debt repayments.