Remittances grow by 12.22pc to $12.77 bn in seven months

Remittances grow by 12.22pc to $12.77 bn in seven months

KARACHI, February 12, 2019 – In a testament to the enduring support from overseas Pakistanis, remittances to the country have experienced a remarkable surge, witnessing a robust 12.22 percent increase to reach $12.774 billion during the first seven months of the fiscal year 2018/2019.

This figure demonstrates a substantial uptick from the $11.383 billion recorded in the corresponding period of the last fiscal year, as reported by the State Bank of Pakistan (SBP) on Monday.

Breaking down the data, the SBP revealed that in January 2019 alone, the inflow of workers’ remittances amounted to $1,743.25 million. Although this figure represents a slight 0.3 percent decrease compared to December 2018, it reflects a commendable 6.4 percent increase compared to January 2018.

Analyzing the country-wise details for January 2019, remittances from key contributors exhibited a positive trend. Inflows from Saudi Arabia, the UAE, the USA, the UK, GCC countries (including Bahrain, Kuwait, Qatar, and Oman), and EU countries amounted to $403.92 million, $352.12 million, $272.32 million, $295.13 million, $166.50 million, and $42.89 million, respectively. These figures showcase a notable increase compared to January 2018, reflecting the continued support from these regions. Specifically, Saudi Arabia, the largest contributor, witnessed an increase from $383.91 million in January 2018 to $403.92 million in January 2019.

The SBP’s data highlights the diverse sources of remittances, with contributions coming in from Malaysia, Norway, Switzerland, Australia, Canada, Japan, and other countries. In January 2019, remittances from these countries amounted to $210.36 million, a positive shift from the $201.46 million recorded in the same month of the previous year.

The surge in remittances signifies the resilience and commitment of the overseas Pakistani community to support their homeland. These funds play a crucial role in stabilizing the country’s external accounts, contributing to economic growth and development.

Economic analysts attribute this impressive growth in remittances to various factors, including the sustained demand for Pakistani labor abroad, effective policies to facilitate remittance flows, and the efforts of the government to strengthen ties with the diaspora.

The positive momentum in remittances serves as a source of encouragement for Pakistan’s economic stability amidst global economic uncertainties. Policymakers and financial authorities are likely to view this trend as a positive indicator for the country’s external finances, emphasizing the need to further enhance measures that foster a conducive environment for overseas Pakistanis to continue their vital role in supporting the nation’s economic well-being.