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Business & Finance Print 2023-09-12

July-August remittances post big fall

  • Pakistan receives workers’ remittances amounting to $ 4.12 billion in July-Aug of FY24
Published September 12, 2023

KARACHI: Inflows of home remittances posted a decline of 22 percent during the first two months of this fiscal year (FY24), the State Bank of Pakistan (SBP) reported on Monday.

According to the SBP, Pakistan received workers’ remittances amounting to $ 4.12 billion in July-Aug of FY24 compared to $ 5.25 billion in the same period of last fiscal year (FY23), depicting a massive decline of 21.6 percent or $ 1.13 billion.

Inflows of home remittance from all major corridors witnessed declining trend. Remittances from Saudi Arabia-the largest contributor in overall inflows, fell 23 percent to $ 977 million in the first two months of this fiscal year. During the period under review, inflows from United States of America (USA) and United Kingdom (UK) dropped by 7.6 percent and 18 percent to $ 504 million and $ 638 million respectively.

During the July-Aug of FY24, overseas Pakistanis from United Arab Emirates (UAE) sent home remittances amounted to $623 million, down by 37.4 percent.

Jul remittances down 19.3pc to $2.027bn YoY

Month on Month basis, in terms of growth home remittances rose by 3.1 percent or $ 70 million during Aug 2023 compared to July 2023. Workers’ remittances recorded an inflow of $2.1 billion during Aug 23 as against $ 2.03 billion in July 2023.

On a yearly basis, the monthly inflow of remittances also registered a decrease of 24 percent in August 2023 compared to August 2022, in which Pakistan secured $ 2.74 billion home remittances.

Remittances inflows during Aug 2023 were mainly sourced from Saudi Arabia worth $490.1 million, UK $331.3 million, UAE $ 308.0 million and USA $262.4 million.

The cash strapped country is seeking healthy foreign inflows to build the depleting foreign exchange reserves and avoid default on debt servicing. Pakistan received highest ever remittances $31.27 billion in FY22 and with a decline of 13 percent remittances inflows were stood at $ 27 billion in FY23.

As the inflows of remittances play an important role in supporting the country’s external account, the state bank and government are making efforts to bring more remittances into the country to reduce the pressure on external account.

Copyright Business Recorder, 2023


Comments are closed.

Tulukan Mairandi Sep 12, 2023 06:46am
Establishment should make a rule. If remittance reduces, those Pakistanis in question must face the wrath. Their kids must be banned from school and power must be disconnected to their houses. This will force overseas Pakistanis to send more home.
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MalikSaabSays Sep 12, 2023 08:51am
Nobody likes sending their savings where they don't consider them safe. What happened post 2022 that people who were confident in their savings being safe in Pakistan, suddenly changed their stance?
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Haris Sep 12, 2023 09:31am
@Tulukan Mairandi, the establishment should make a rule not to settle themselves and their families in Europe and America after retirement. And abolish DHAs. Maybe that will help better
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Aneesh Suhravardi Sep 12, 2023 09:54am
@Tulukan Mairandi, Yeah as if their earnings belong to the Government of Pakistan. WOW, Seriously at times I feel like people like you are responsible for the current mess. Why should they send more? They are not responsible for your subsidies! And more importantly why should their kids be banned from schools? as if Pakistan is already having the highest literacy rate in the world.
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Tulukan Mairandi Sep 12, 2023 10:41am
These overseas Pakistanis are selfish. Their families enjoy low cost of living in Pakistan and they send money from abroad using illegal methods, straining our economy. The establishment must make those working abroad to remit at least 50% of their earnings, otherwise passport must be revoked and those who don't obey must have their kids banned from school, and electricity/ water connections terminated until the remittances are regularized. Pakistanis abroad must serve their nation before their belly.
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Fazeel Siddiqui (Overseas Pakistani) Sep 12, 2023 11:54am
Failed 76 years defacto rulers have no confidence themselves so they do everything unethically, on their footsteps resident Pakistanis lost confidence 25 years back and now finally Overseas Pakistanis lost hope in Pakistan. So what non-resident Pakistanis and world's interest will be to invest in Pakistan? Forget investment, Pakistan's way forward is securing more loans to spend on oversized state structure and to repay past loans with mammoth markup, sell assets of Pakistan, more importantly like your civil manpower rent your militancy power in war conflicts to raise income.
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Fazeel Siddiqui (Overseas Pakistani) Sep 12, 2023 11:56am
Proper headline, remittances correcting back to normal levels of 2009-2018.
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Fazeel Siddiqui (Overseas Pakistani) Sep 12, 2023 12:11pm
Business Recorder please publish a more researched analysis, I don't see numbers of RDA inflows clubbed with remittances figures, IK's scam RDA is another place Overseas Pakistanis are wasting their money by sending their surplus funds at huge costs.
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Tulukan Mairandi Sep 12, 2023 01:15pm
It's about time to punish the leeches working overseas, enjoying the perks of being a Pakistani, but sending money home using illegal means and investing overseas.
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Farah Khan Sep 12, 2023 03:08pm
Pakistan is being pushed into this looser state, by the establishment and the cronies corrupt PDM. If IK was in power, after the massive amount of checks and balances required, they would have been able to come out if the mess by overseas Pakistani remittances, they all have confidence in IK' rule.
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rana Amanullah Khan Sep 13, 2023 01:00am
Send formula
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Jamil khan khan Sep 15, 2023 08:40am
My money is wear
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