Karachi, August 10, 2023 – The State Bank of Pakistan (SBP) has reported a significant drop in remittances from Pakistani workers in the United Arab Emirates (UAE) during the month of July 2023, revealing a concerning decline of 31 percent compared to the same period in the previous year.
The latest data released by the SBP shows that remittances from the UAE amounted to $315 million in July 2023, a sharp contrast to the $456 million received during the same month in the preceding year. This notable decrease in remittances from the UAE is a cause for concern for the Pakistani economy, which heavily relies on the financial support of its overseas workers.
Notably, this decline in remittances is part of a larger trend affecting multiple key sources of remittances for Pakistan. The overall inflow of remittances in July 2023 saw a significant drop of 19.3 percent, totaling $2.03 billion, as compared to the $2.51 billion received in the same month of the previous year.
Apart from the UAE, other significant sources of remittances to Pakistan have also experienced declines. Remittances from the United States, the United Kingdom, and Saudi Arabia witnessed decreases of 4.1 percent, 25.2 percent, and 15.7 percent, respectively, during the same period under review. These declines indicate potential challenges faced by Pakistani expatriates in these countries.
For the fiscal year 2022-23, Pakistan has received a total of $27.03 billion in workers’ remittances, a noticeable decline from the $31.28 billion recorded in the preceding fiscal year. This cumulative decline of 13.6 percent year-on-year raises concerns about the financial stability and development prospects of Pakistan.
The government and relevant authorities in Pakistan will likely intensify efforts to understand the causes behind these remittance declines and formulate strategies to encourage and facilitate remittances from overseas Pakistanis, as these funds play a crucial role in supporting the country’s economy, balance of payments, and the livelihoods of countless families across the nation.