The State Bank of Pakistan (SBP) reported on Tuesday that overseas Pakistani sent $9.298 billion during the first five months of the current fiscal year, spanning from July to November. This figure compares closely with the $9.282 billion received during the same period in the preceding year.
According to the central bank, the inflow of workers’ remittances in November 2019 amounted to $1,819.66 million, marking a 9.05 percent decline from October 2019 but showing a significant 9.35 percent increase from November 2018.
Breaking down the country-wise details for the month of November 2019, the largest contributions came from Saudi Arabia, the United Arab Emirates (UAE), the United States, the United Kingdom, Gulf Cooperation Council (GCC) countries (including Bahrain, Kuwait, Qatar, and Oman), and European Union (EU) countries. Inflows from these nations amounted to $407.48 million, $383.77 million, $298.64 million, $285.56 million, $172.25 million, and $52.76 million, respectively. These figures compare favorably with the inflow from the same countries in November 2018, which stood at $395.12 million, $350.35 million, $268.32 million, $246.78 million, $153.51 million, and $42.22 million, respectively.
Additionally, remittances received from Malaysia, Norway, Switzerland, Australia, Canada, Japan, and other countries during November 2019 amounted to $219.19 million collectively. This represents an increase from the $207.74 million received in November 2018.
The steady flow of remittances is crucial for Pakistan’s economy, providing a stable source of foreign exchange reserves. Despite the marginal fluctuations in the overall growth rate, the sustained levels of remittances during the first five months of the fiscal year indicate the resilience of this vital financial lifeline.
The SBP’s data suggests that while there was a month-on-month decrease in remittances for November 2019, the year-on-year increase highlights the continued confidence of overseas Pakistani workers in sending funds back home. The contributions from key countries, especially Saudi Arabia and the UAE, remain substantial, underlining the significance of the diaspora in supporting the country’s economic stability.
As the fiscal year progresses, observers and policymakers will closely monitor remittance trends, particularly given their impact on the country’s foreign exchange reserves and balance of payments. The challenge will be to maintain and potentially boost remittance inflows amid global economic uncertainties and geopolitical developments, ensuring a positive trajectory for Pakistan’s economic outlook.