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Overseas workers' remittances up 27.4% MoM, clock in at $2.5bn in March

  • Inflow highest since August 2022, attributed to Ramadan factor
  • Cumulative figure for July to March 2022-23 stands at $20.527bn, 10.8% lower year-on-year
Published April 10, 2023

Inflow of overseas workers’ remittances registered a significant increase to clock in at $2.5 billion in March 2023, an increase of 27.4% on a month-on-month basis, as compared to $1.98 billion in February 2023, showed data released by the State Bank of Pakistan (SBP) on Monday.

The inflows were the highest recorded since August 2022, and attributed to the Ramadan factor.

“This is a seasonal rise due to the ongoing month of Ramadan, where a lot of funds are remitted on account of Zakat and other charities, which is reflected in the increase in remittances,” Saad Khan, Head of Research at IGI Securities, told Business Recorder.

“On account of increase in remittances, the current account deficit for the month of March is likely to be negligible, and there is also a strong possibility of a current account surplus this month,” he added.

Remittances clock in at $2bn in February, down 9.5% on a yearly basis

On a yearly basis though, the inflow of remittances registered a decline of 11%, as they stood at $2.83 billion in the same month of the previous year, the data showed.

On a cumulative basis, the inflow of remittances during the July to March period of the fiscal year 2022-23 stood at $20.527 billion, 10.8% lower than $23.018 billion in the same period of the previous fiscal year, a decline of nearly $2.5 billion.

“During the FY22 the average remittance figures stood at $2.6 billion, so the latest figures are not too exciting,” said Khan.

The market expert said that on an annualised basis, the ongoing rupee depreciation and the increase in black market premiums have become a major headache, as people are diverting their inflows from formal channels.

“The problem of hawala and hundi remains rampant, which is being reflected in the cumulative decline,” he added.

January foreign remittances at 31-month low, clock in at $1.9bn

Overseas Pakistanis in Saudi Arabia remitted the single largest amount in March 2023 as they sent $564 million during the month. This was nearly 18% lower than the $686 million sent by expatriates in the same month of the previous year.

Inflows from the United Kingdom inched up 5% as they increased from $402 million in March 2022 to $422 million in March 2023.

Jul-Feb FY23: IT, ITeS export remittances up 1.7pc to $1.718bn

Remittances from the United Arab Emirates amounted to $407 million during the month, a decline of 22% compared to $521 million in March 2022.

Moreover, remittances from the European Union increased 6% as they amounted to $299 million in March 2023. Overseas Pakistanis in the US sent $316 million in March 2023, registering a year-on-year growth of 5%.

Comments

Comments are closed.

Tulukan Mairandi Apr 10, 2023 11:39am
Only because of Ramadan. It will slump drastically next month, as Pakistani unskilled workers (the bulk of the source of remittance) will have to repay the debt taken to send such a large amount home. Most take huge advances from their companies which will be deducted from their salaries, leaving them with a meagre amount.
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Parvez Apr 10, 2023 01:06pm
...and the PDM have done all they can and kept these patriotic people from freely exercising their vote. Isn't that shameful..
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Joe Apr 10, 2023 01:17pm
Still numbers are lower than March 2022!
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Abdullah Apr 10, 2023 02:18pm
@Parvez, No.Its not shamefull.They will vote on the basis if emotions and not ground realities of there constituencies.
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dr fahad Apr 10, 2023 03:19pm
@Tulukan Mairandi, go and comment on Indian websites
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Parvez Apr 10, 2023 03:36pm
@Abdullah, Ground reality is one year ago a dozen bananas cost Rs 110 max. today it is Rs. 350....the Dollar was at Rs 185, today it is Rs 285 .....would you like me to on.
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Az_Iz Apr 10, 2023 05:03pm
April should do well as well, due to Eid. It may taper off in May, and end up about 10% less than last year. It is a shameful performance by this government, which is chiefly responsible for the decline in remittances, by keeping the value of the rupee high for too long, until the IMF, rightly , forced it to make it market driven.
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Abdullah Apr 10, 2023 07:32pm
@Parvez, so you base your economy on bananas.Dont you know that economy was heated artificially by Imran to retain power and as a result we are in a mess .For 3 .5 years he did nothing except complaining.
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Ulgen Apr 10, 2023 08:02pm
@Abdullah, How did ge do it artificially? If there is such a trick, ask your money grabbing buddies to do it. They are good in such things.
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Pakistan meri jaan Apr 10, 2023 08:06pm
Banana rate for your kind information six month ago it was 60 rupees Stored bananas is in markwt that is why it is costly Apple irani arpund 300 but it is not the season so things are getting better inshahallah
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Fazeel Siddiqui (Overseas Pakistani) Apr 10, 2023 08:19pm
Pakistan is a sinking ship which sailed for last two decades because of $300 billion remittances by Overseas Pakistanis. In turn they are denied of voting facility and always taunted of being unaware of ground realities although they're the one whose stake is highest at risk. GoP gave them always unfair low exchange rate at SBP making their investments always loss making. Overseas Pakistanis are suggested to invest in host country in currency they earn. Pakistani Establishment is parasite, Pakistan will remain in same marshland even if we double the remittances.
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Parvez Apr 11, 2023 01:50am
@Abdullah, Obviously you are in denial.....you point out banana but you fail to point out the inflation that I have shown examples of. Also remember PTI was in government for 3 1/2 years while PML-N and PPP held government for some 20 plus years. Sir, try think logically and in the interest of the common man.
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