KARACHI: Inflows of workers’ remittances recorded a notable 10 percent growth during October 2023 compared to the same period of last fiscal year (FY23).
According to statistics released by the State Bank of Pakistan, after witnessing a downward trend in the initial three months of this fiscal year (FY24), inflows of home remittances registered an increase of 9.6 percent in October 2023. Previously, workers’ remittances posted 22 percent, 26 percent and 11 percent decline in July, August and September 2023, respectively.
According to the SBP, Pakistan’s home remittances amounted to $ 2.463 billion in October 2023 compared to $ 2.247 billion in October 2022, depicting an increase of $ 216 million.
Inflows of remittances in October 2023 are also some 11.5 percent higher than September 2023, in which the country received $2.2 billion home remittances.Remittance inflows during October 2023 were mainly sourced from Saudi Arabia worth $616.8 million, United Arab Emirates amounted to $473.9 million, United Kingdom $330.2 million and United States of America worth $283.3 million.
Cumulatively, home remittances posted 13 percent decline in the initial four months of this fiscal year. Workers’ remittances inflows of $ 8.8 billion were recorded during July-Oct of FY24 as against $ 10.144 billion in corresponding period of last fiscal year, showing a decrease of $1.344 billion.
All major corridors of the workers’ remittances witnessed a declining trend during the first four month of FY24. Inflows from Saudi Arabia (SA) fell 16 percent to $ 2.133 billion in July-Oct of FY24 down from $2.53 billion in the same period of last fiscal year. However, Saudi Arabia still ranked one.
During the period under review, remittances from the UK stood at $1.278 billion, down by 7 percent. In addition, inflows of workers’ remittances from the US decreased by 7 percent to $1.051 during July-Oct of FY24.
Analysts are expecting further improvement in the inflows of home remittances in coming months as the exchange rate is gradually increasing.
Copyright Business Recorder, 2023