KARACHI: Inflows of workers’ remittances recorded a decline of 11 per cent in eight months (July – February) of fiscal year 2022-2023, according to data released by the State Bank of Pakistan (SBP) on Friday.
(more…)Tag: remittances
-
Workers’ remittances fall by 11pc in 1HFY23: SBP
KARACHI: The inflow of workers remittances declined by 11 per cent in first half (July – December) of fiscal year 2022-2023, according to data released by State Bank of Pakistan (SBP) on Friday.
(more…) -
Pakistan registers 10pc decline in inflow of foreign remittances
KARACHI: Pakistan has registered around 10 per cent decline in inflows of foreign remittances during first five months (July – November) of current fiscal year.
According to data released by State Bank of Pakistan (SBP) on Wednesday, the inflows of workers remittances declined to $12 billion during first five months of the current fiscal year as compared with $13.29 billion, showing a decrease of 9.7 per cent.
READ MORE: Pakistan remittances decline by 15.7% in October 2022
Experts in financial markets said that overseas Pakistanis were reluctant to send money due to prevailing uncertain exchange rate. Besides, many overseas Pakistanis have option to send their money through informal channels in order to get better exchange rate.
READ MORE: Home remittances decline to $7.68 billion in 1QFY23
The interbank foreign exchange market closed at PKR 224.71 to the dollar on Wednesday December 14, 2022. Whereas, the dollars are not available in the open market and if available the exchange rate has gap of PKR 20 to PKR 30 comparing interbank rates.
READ MORE: Pakistan remittances from Saudi Arabia fall by 7.5% in two months
A sharp decline of 14.23 per cent in inflow of remittances has been recorded in November 2022, when the country received $2.11 billion as compared with $2.46 billion in the same month of the last year.
Similarly, the remittances witnessed a decline of 4.52 per cent on Month on Month (MoM) basis as the country received $2.21 billion in the month of October 2022.
-
Pakistan remittances decline by 15.7% in October 2022
KARACHI: Inflow of workers remittances has declined by 15.7 per cent in the month of October 2022 when compared with the same month of the last year, according to data released by State Bank of Pakistan (SBP) on Friday.
READ MORE: Home remittances decline to $7.68 billion in 1QFY23
The inflows of home remittances fell to $2.215 billion in October 2022 when compared with $2.628 billion in the same month of the last year.
The remittances in October 2022 also witnessed a fall of 9 per cent when compared with $2.437 billion received during the month of September 2022.
READ MORE: Pakistan remittances from Saudi Arabia fall by 7.5% in two months
Remittances inflows during October 2022 were mainly sourced from Saudi Arabia ($570.5 million), the United Arab Emirates ($427 million), the United Kingdom ($278.8 million) and the United States of America ($253.1 million).
The cumulative inflow declined by 8.6 per cent to $9.9 billion during first four months of the current fiscal year.
READ MORE: State Bank signs deal to analyze property prices
The inflow of remittances has been recorded at $9.9 billion during July – October of current fiscal year 2022/2023 as compared with $10.83 billion in the corresponding period of the last fiscal year.
READ MORE: SBP bars banks from taking service charges on flood donations
-
Home remittances decline to $7.68 billion in 1QFY23
KARACHI: Inflow of home remittances has slipped by 6.34 per cent to $7.68 billion during first quarter of the current fiscal year 2022-2023, according data released by the State Bank of Pakistan (SBP) on Tuesday.
The inflow of remittances was $8.2 billion in the corresponding quarter of the last year.
READ MORE: Pakistan remittances from Saudi Arabia fall by 7.5% in two months
The data showed that Pakistanis living in Saudi Arabia remitted an amount of $1.89 billion during the first quarter of the current fiscal year as compared with $2.1 billion in the corresponding quarter of the last fiscal year, showing a decline of 10 per cent.
Similarly, the inflow from the UK fell to $1.1 billion during the quarter under review as compared with $1.14 billion in the same quarter of the last fiscal year, showing a decline of 4.2 per cent.
READ MORE: State Bank signs deal to analyze property prices
However, Pakistanis living in the US remitted an amount of $817 million during first quarter of the current fiscal year as compared with $762 million in the corresponding quarter of the last fiscal year, showing an increase of 7.1 per cent.
The inflow of remittances from the UAE recorded a decline of 8.7 per cent to $1.46 billion during the quarter under review as compared with $1.6 billion in the same quarter of the preceding fiscal year.
READ MORE: SBP bars banks from taking service charges on flood donations
The flow of home remittances from the other GCC countries to Pakistan also witnessed a decline of 4.1 per cent to $877 million as compared with $914 million.
Likewise, the inflow from the EU countries recorded a slump of 7.7 per cent to $829 million when compared with $898 million.
READ MORE: Complaints against banks for refusing flood donations
The remittances sent by overseas Pakistanis in the month of September 2022 recorded at $2.44 billion as compared with $2.78 billion in the same month of the last year, showing a decline of 14.07 per cent.
-
SBP advises banks to issue digital verification for remittances
KARACHI: State Bank of Pakistan (SBP) has advised banks to issue digital verification for proceeds realization certificate (PRCs) against remittances.
(more…) -
Pakistan’s receives record high $31.2bn remittances in FY22
KARACHI: The remittances sent by overseas Pakistani hit all time high on annual basis to $31.2 billion in fiscal year 2021/2022, the State Bank of Pakistan (SBP) said on Monday.
The overseas Pakistanis sent $31.24 billion during fiscal year 2021/2022 as compared with $29.45 billion in the preceding fiscal year, showing a growth of 6.1 per cent.
READ MORE: Pakistan receives $28.41 billion as workers remittances in 11 months
Pakistanis workers living in Saudi Arabia sent the highest amount of $7.74 billion during fiscal year 2021/2022 as against $7.73 billion in the preceding fiscal.
In terms of growth, the highest inflows of remittances received from the US. The Pakistanis working in the US have sent $3.08 billion during fiscal year 2021/2022 as compared with $2.60 billion in the preceding fiscal year, showing an increase of 18.5 per cent.
READ MORE: SBP issues instructions on Hajj related outward remittances
Pakistan received an amount of $4.48 billion from the UK during the fiscal year 2021/2022, increased by 9.7 per cent when compared with 4.09 billion in the preceding fiscal year.
On the regional basis, Pakistan received an amount of $5.84 billion from the UAE during the fiscal year 2021/2022, declined by 5.2 per cent when compared with $5.61 billion in the preceding fiscal year.
READ MORE: SBP jacks up policy rate by 6.75% to 13.75%
The country received an amount of $3.62 billion from Gulf Cooperation Countries (GCC) during fiscal year 2021/2022, showing an increase of 8.7 per cent when compared with $2.91 billion in the preceding fiscal year. The GCC countries are included Bahrain, Kuwait, Qatar and Oman. The inflow of remittances from the EU countries recorded sharp growth of 23.2 per cent. Pakistan received an amount of $3.36 billion during fiscal year 2021/2022 when compared with $2.73 billion in the preceding fiscal year.
READ MORE: SBP lifts quarantine requirement for banknotes
In June 2022, remittances rose to $2.76 billion, increasing by 18.4 per cent on Month on Month (MoM) basis and 1.7 percent on Year on Year (YoY) basis.
In June, remittances were mainly sourced from Saudi Arabia ($666 million), United Arab Emirates ($495 million), United Kingdom ($455 million) and United States of America ($285 million).
-
Pakistan receives $28.41 billion as workers remittances in 11 months
KARACHI: The inflow of workers’ remittances recorded an increase of 6.25 per cent to $28.41 billion during the first 11 months (July – May) 2021/2022, State Bank of Pakistan (SBP) said on Friday.
The country received an amount of $26.74 billion in the same period of the last fiscal year.
READ MORE: SBP issues instructions on Hajj related outward remittances
The inflows in May 2022 recorded $2.33 billion when compared with $3.12 billion in April 2022, showing a decline of 25 per cent. The remittances in May 2022 also fell by 6.8 per cent when compared with $2.5 billion received in May 2021.
Remittances in May 2022 were mainly sourced from Saudi Arabia ($542 million), United Arab Emirates ($435 million), United Kingdom ($354 million) and the United States of America ($233 million).
READ MORE: SBP jacks up policy rate by 6.75% to 13.75%
Pakistani workers residing in the US sent an amount of $2.79 billion during the first 11 months of the current fiscal year as compared with $2.35 billion in the same months of the last fiscal year, showing a growth of 18.5 per cent. Similarly, inflows of remittances from the UK registered a growth of 8.5 per cent to $4.02 billion during the period under review as compared with $3.71 billion in the same period of fiscal year 2020/2021.
The Pakistani workers living in the UAE sent an amount of $5.33 billion during July – May 2021/2022 as against $5.61 billion in the corresponding period of the last fiscal year, showing a decline of 5 per cent.
READ MORE: SBP lifts quarantine requirement for banknotes
The inflows from Saudi Arabia remained flat at $7.06 billion during the first eleven months of the current fiscal year as compared with $7.04 billion in the same period of the last fiscal year.
-
Sending foreign exchange overseas for trading illegal: SBP
KARACHI: The State Bank of Pakistan (SBP) has said that sending foreign exchange outside Pakistan to overseas foreign exchange trading through any payment channel is not allowed.
The SBP in a circular issued May 18, 2022 said that it had been observed a number of offshore foreign exchange trading, margin trading and contract for difference (CFD) trading websites/apps/platforms (such as OctaFX, Easy Forex, etc.) are offering their products to residents in Pakistan, luring public through social media advertisements to buy their products/services. Such buying by residents of Pakistan is a violation of section 4(1) of the Foreign Exchange Regulation Act (FERA) 1947.
READ MORE: SBP makes permission must for import of mobile phone, cars
Further, it has also been observed that banks are facilitating settlement/ payments through their payment channels to such offshore trading platforms.
The SBP clarified that remittance of foreign exchange directly/ indirectly outside Pakistan to overseas foreign exchange trading, margin trading, and CFD trading apps/ websites/ platforms through any payment channel is not allowed as no general or special permission has been granted by the State Bank under section 5(1) of the FERA.
READ MORE: SBP may raise policy rate by 100bps to 13.25%
The central bank invited attention of banks towards section 4(1) of the Foreign Exchange Regulation Act 1947 (FERA), which provides, “except with the previous general or special permission of the State Bank, no person other than an authorized dealer shall in Pakistan, and no person resident in Pakistan other than an authorized dealer shall outside Pakistan, buy or borrow from, or sell or lend to, or exchange with, any person not being an authorized dealer, any foreign exchange”.
Further, banks attention is also invited towards section 5((1(a)) of the FERA which provides, “Save as may be provided in and in accordance with any general or special exemption from the provisions of this sub-section which may be granted conditionally or unconditionally by the State Bank, no person in, or resident in, Pakistan shall— (a) make any payment to or for the credit of any person resident outside Pakistan”.
READ MORE: Pakistan’s forex reserves fall to $16.37 billion
In view of the foregoing, banks are advised to ensure compliance of aforesaid sections of the FERA and take all necessary measures, including the following, to stop payments to all such forex trading, CFD trading, margin trading websites/apps/platforms by their customers through any payment channel:
— Inform their customers regarding inherent risks and illegality of such trading with any such person/entity.
— Institute a mechanism of ongoing monitoring whereby such trading websites/ apps/ platforms are identified and blocked from making payments through any payment channel.
READ MORE: Current account deficit swells to $13.78 bn in 10 months
In case it is observed that a bank has failed to carry out the measures and has facilitated the transactions as outlined above, the State Bank of Pakistan may proceed against that delinquent Authorized Dealer under relevant provisions of the FERA and take any pecuniary or administrative action as deemed necessary.
