INP-WealthPk

Inflow of Remittances Continues to Rise at Unprecedented Rate

May 23, 2022

Jawad Ahmed ISLAMABAD, May 23, (INP-WealthPK): The inflow of remittances to Pakistan continued to rise at an unprecedented rate, hitting $3.125 billion in April of the current fiscal period. According to the latest data available with WealthPk, this is the highest level of workers' remittances received in a single month in the history of the country. “Remittances crossed the monthly mark of $3 billion for the first time,” State Bank of Pakistan (SBP) reported on its official Twitter handle. During the first 10 months (July-April) of the current fiscal year, the inflow of remittances to Pakistan grew by 7.6% and reached $26.08 billion, compared to $24.23 billion in the same period of the previous fiscal year. SBP says that remittances inflow remained more than $2 billion for the 23rd consecutive month. [caption id="attachment_67317" align="aligncenter" width="696"] Source: State Bank of Pakistan (SBP)/ WealthPK Research[/caption] According to the SBP monthly data, remittances increased by 11.21% in April 2022, reaching $3.125 billion from $2.81 billion in the previous month of the current fiscal period. In April, the inflow of remittances climbed by 11.9%, month-on-month basis, compared to $2.79 billion in the same month of the previous fiscal period. The largest sources of remittances inflow, according to the central bank, are Saudi Arabia, the United Arab Emirates, the United Kingdom and the United States. In April, cash flow from Saudi Arabia reached $707 million from $673 million in the previous fiscal year. Remittances from Saudi Arabian increased by 5%, month-on-month basis, in the current fiscal period, compared to the same month of the previous year. Pakistanis working in the UAE sent $614 million in April as compared to $558 million in the same month of previous year, registering an increase of 10%. Remittances from United Kingdom increased by 11% in April and reached $484 million from $435 million. The amount sent home by Pakistanis living in the United State grew by 18% and swelled to $346 million, compared to $294 million in the same month of previous fiscal. From July to April period of the current fiscal period, remittances totalled $6.517 billion from Saudi Arabia, $4.898 billion from the United Arab Emirates and $3.671 billion from the United Kingdom while $2.557 billion was sent by Pakistanis from the United States of America. The remittances of Pakistani workers are the primary source of foreign currency inflow to the country. The huge amount sent by Pakistanis from abroad allows the government to minimise current account deficit of the country. SBP and government incentives to bring more domestic remittances into the banking system are continuing to pay off. “On the other hand, the inflow of remittances always peaks during Ramadan and Eid festivals,” experts told WealthPK. However, World Bank has predicted that the inflow of remittances to Pakistan would decrease by 8% by the end of the current fiscal period, down from about 20% in the previous year.