Foreign remittances to Pakistan have surged by an impressive 9.68% during the fiscal year 2018/2019, reaching an unprecedented high of $21.84 billion.
The State Bank of Pakistan (SBP) reported this significant uptick, marking a substantial increase from the previous year’s remittances of $19.91 billion.
In June 2019 alone, the inflow of remittances reached $1,650.52 million. Although this amount is 28.72 percent lower than the preceding month of May 2019, it demonstrates a substantial 1.40 percent increase when compared to June 2018.
Breaking down the country-wise details for June 2019, the largest contributors to remittances were Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar, and Oman), and EU countries. Remittances from these nations amounted to $334 million, $356.03 million, $276.76 million, $268.97 million, $163.46 million, and $52.49 million, respectively. Comparing these figures to June 2018, there were slight variations, with some countries experiencing a marginal decline in remittance inflows.
Specifically, inflows from Saudi Arabia, a key source of remittances, decreased marginally from $336.61 million in June 2018 to $334 million in June 2019. The UAE and the USA maintained their positions as significant contributors, with $356.03 million and $276.76 million, respectively, in June 2019.
Remittances from the European Union (EU) countries witnessed a decrease from $62.16 million in June 2018 to $52.49 million in June 2019. However, the United Kingdom (UK) observed a modest increase from $260.25 million to $268.97 million during the same period.
Meanwhile, remittances received from Malaysia, Norway, Switzerland, Australia, Canada, Japan, and other countries collectively amounted to $198.81 million in June 2019. This figure, while slightly lower than the $199.47 million received in June 2018, underscores the diversified nature of remittance sources for Pakistan.
The consistent rise in remittances reflects the confidence and trust overseas Pakistanis have in the economic stability of their home country. The government’s efforts to facilitate and encourage remittances play a crucial role in maintaining this positive trend. Remittances not only contribute significantly to the country’s foreign exchange reserves but also play a vital role in supporting the livelihoods of countless families across Pakistan.
As the global economic landscape continues to evolve, the resilience of remittances from overseas Pakistanis serves as a beacon of stability for the country’s economic prospects. The challenge ahead lies in sustaining and further increasing these remittance inflows, as they remain a pivotal component of Pakistan’s economic resilience and growth.
