Raza Khan

Workers’ remittances, sent by Pakistanis living in European Union (EU)’s countries, fell by 21.25% in October, State Bank of Pakistan (SBP) reported Remittances from EU countries dropped to $232.7 million in October from $295.5 million during the same month of last fiscal year, the SBP data said. A decline of 10.36% in workers’ remittances from the EU was also recorded during the month under review compared to remittances received in the preceding month of September.

Pakistan received $259.6 million as remittances from EU countries in September. Overall, workers’ remittances during the first four months (July-October) of the current fiscal year 2022-23 from EU countries also declined by 11.1% as compared to the same period of the last fiscal. Remittances from the EU in July-October 2022-23 dropped to $1.061 billion from $1.193 billion during the same months of the last fiscal year 2021-22. A decline of 8.6% is also witnessed in Pakistan’s overall workers’ remittances during the first four months of 2022-23.

The country’s total workers’ remittances stood at $9.9 billion in July-October this year against $10.82 billion during the corresponding period of last year. According to SBP data, workers' remittances from Italy declined by 18% during October and fell to $62.2 million from $75.9 million in corresponding month of last year. Similarly, remittances from France also decreased by 22.81% and recorded at $33.5 million during the month under review against $43.4 million in the corresponding period of last year.

Workers’ remittances from Germany dropped to $35.3 million in October 2022 from $45.3 million during the same month of 2021, registering a negative growth of 9.71%. Pakistanis in Greece also sent 13.18% less amount back home in October than they sent in the same month of last year. Remittances from Greece recorded $27 million during the month under review against $31.1 million in the same month of 2021.

Remittances from Sweden, Ireland, Belgium, Spain, the Netherlands and Denmark also posted negative growth during the month under review. Apart from EU countries, remittance from the United Kingdom (UK) also dropped by 21.48% during October and fell to $278.8 million from $355.1 million during the corresponding month of last year. With $570.5 million, Saudi Arabia remained Pakistan’s largest source of workers’ remittances in October.

However, a decline of 17.29% was also recorded in remittances from the Kingdom.  Workers’ remittances from UAE also dropped by 10.87% during the month under review and declined to $427 million from $479.1 million. The USA is among the few countries from which remittances registered positive growth. Pakistani diaspora in the USA sent home $253.1 million in October against $238.3 million during the same month of 2021, with an addition of 6.21%.

Pakistan received $3.361 billion as workers’ remittances in the last fiscal year 2021-22 from EU countries, 23.2% higher as compared to 2020-21 when numbers were $2.7286 billion. Italy remained Pakistan's largest source of workers’ remittances among EU countries during the last fiscal year with $856.7 million, followed by Spain and Germany. Overall, Saudi Arabia remained Pakistan’s largest source of workers’ remittances in 2021-22, with a volume of $7.7433 billion, followed by the United Arab Emirates (UAE). Remittances from the UAE registered $5.8418 billion.

Credit : Independent News Pakistan-WealthPk