FY22: Over $31bn record remittances received

KARACHI: The country received the highest-ever home remittance inflows of over $31 billion during the last fiscal year (FY22).

The State Bank of Pakistan (SBP) reported on Monday that home remittances posted some 6.1 percent growth during the last fiscal year. With this increase, inflows of workers’ remittances rose to the highest-ever level in history at $31.237 billion at the end of FY22 compared to $29.45 billion in FY21, depicting an increase of $1.787 billion.

However, overall growth in remittances is lower than FY21, in which the country achieved 27 percent growth compared to 6 percent in FY22. Analysts said that growth in home remittance sent by overseas Pakistan during the last fiscal year is because of joint efforts of the government of Pakistan and the State Bank of Pakistan.

On month-on-month basis, home remittances increased by 18 percent during June 2022 compared to May 2022. Pakistan fetched home remittances amounting to $2.76 billion in June 2022 compared to $2.33 billion in May 2022, depicting an increase of $ 429 million.

On year-on-year basis, inflows of workers’ remittances also rose by 2 percent or $47 million in June 2022 relative to $2.714 billion in June 2021.

Pakistan is receiving over $2 billion home remittances since June 2020 and the trend continued during the last fiscal year. In addition, for the first time, monthly inflows crossed the mark of $3 billion in April 2022 alone.

Remittances: $2.8bn record inflows received in March

Although, home remittances inflows from Saudi Arabia were almost flat during the last fiscal year, it remained the largest contributor with 25 percent share. Inflows from Saudi Arabia stood at $7.743 billion in FY22, up by 0.2 percent, SBP revealed.

Workers’ remittances from the US increased by 18.5 percent to $3.081 billion during the last fiscal year as against $2.599 billion in the previous fiscal year. Overseas Pakistanis from the UK remitted $4.487 billion, up by 9.7 percent, during July-June of FY22. Home remittances from UAE recorded 10 percent growth to $5.841 billion in FY22.

Remittances’ inflows during April 2022 were mainly sourced from Saudi Arabia amounted to $686.2 million, United Arab Emirates $557 million, United Kingdom $381 million and the United States of America $246 million.

Economists said that there is need to make more efforts to increase the inflow of home remittances as presently the country’s foreign exchange reserves are sliding due to massive external payment.

Copyright Business Recorder, 2022