KARACHI: Workers’ remittances continued to post strong growth and the country received the highest-ever $3.1 billion inflows during April 2022, mainly due to funds sent by expats on Eid-ul-Fitr.
Pakistan was receiving over $2 billion home remittances since June 2020, however, for the first-time monthly inflows crossed the mark of $3 billion in April 2022 alone.
The State Bank of Pakistan (SBP) reported Friday that in terms of growth, on a Month-on-Month basis, home remittances increased by 11.2 percent during April 2022.
Pakistan fetched home remittances amounting to $3.125 billion in April 2022 compared to $2.81 billion in March 2022, depicting an increase of $315 million. Year-on-Year basis, inflows of workers’ remittances also rose by 12 percent or $332 million in April 2022 relative to $2.793 billion in April 2021.
Cumulatively, home remittances registered 7.6 percent or $1.848 billion growth in the first ten months of this fiscal year (FY22). Overall, home remittances amounted to $26.1 billion were received during July-April of FY22 compared to $24.229 billion in the same period of last fiscal year.
Economists said that the arrival of highest ever home remittances is a good sign for the cash strapped country and it will help to reduce the pressure on the external account.
They are estimating that with the current growth rate, the home remittances are expected to cross the $30 billion mark by the end of this fiscal year. During the last fiscal year, workers’ remittances worth $29.45 billion were arrived. They said that higher inflows will also help to finance the rising current account deficit of the country.
During the period under review, Saudi Arabia was the largest contributor with 25 percent share in overall remittances. Inflows from Saudi Arabia rose to $6.517 billion, up by 1.6 percent.
Workers’ remittances from the US increased by 20.4 percent to $2.557 billion during the first ten months of this fiscal year as against $2.124 billion is corresponding period of last fiscal year. Overseas Pakistanis from the UK remitted $3.671 billion, up by 10 percent, during July-April of FY22.
Remittances’ inflows during April 2022 were mainly sourced from Saudi Arabia amounted to $707 million, United Arab Emirates $614 million, United Kingdom $484 million and the United States of America $346 million.
Copyright Business Recorder, 2022