Workers’ remittances cross $20bn mark

KARACHI: Inflows of home remittances crossed $ 20 billion mark in the first eight months of this fiscal year (FY22).

The State Bank of Pakistan (SBP) on Thursday reported that cumulatively workers’ remittances posted 7.6 percent growth during July-Feb of FY22. Overall, the country received home remittances amounted to $20.1 billion in the first eight months of this fiscal year compared to $18.71 billion in the same period of last fiscal year, showing an increase of $1.39 billion.

During the period under review, Saudi Arabia was the largest contributor with 25 percent share in overall remittances. Inflows from Saudi Arabia surged to $5.1 billion, up by 2 percent. Workers’ remittances from the USA increased by 18.2 percent to $1.91 billion during the first eight months of this fiscal year as against $1.6 billion is corresponding period of last fiscal year. Overseas Pakistanis from the UK remitted $2.78 billion, up by 10.3 percent, during July-Feb of FY22.

Workers’ remittances also continued strong performance month on month (MoM) basis as monthly inflows remained above $2 billion in February 2022. Pakistan is receiving over 2 billion home remittances since June 2020.

Remittances up 2% month-on-month, amount to $2.2bn in February

In terms of growth, during February 2022, remittances increased by 2 percent on a MoM basis despite fewer working days compared to January 2022. Some $2.2 billion inflows arrived in February 2022 compared to $2.14 billion in January.

However, on year on year basis, workers’ remittances in February fell by 2.7 percent compared to February 2021, in which $2.25 billion were received.

Remittance inflows during February 2022 were mainly sourced from Saudi Arabia worth $558 million, United Arab Emirates amounted to $387 million, United Kingdom $319 million and United States of America $210 million.

It may be mentioned here that remittances fell marginally in January and February, partly reflecting seasonality, but still posting growth in line with expectations so far, this fiscal year. The higher inflows of home remittances also helped to finance the rising current account deficit.

Copyright Business Recorder, 2022