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Tag: remittances

  • Remittances remain above $2 billion for 12th straight month

    Remittances remain above $2 billion for 12th straight month

    KARACHI: The inflow of workers’ remittances continued their exceptional streak in May 2021, remaining above $2 billion for a record 12th straight month, State Bank of Pakistan (SBP) said on Thursday.

    Remittances received during May 2021 amounted to US $ 2.5 billion, 33.5 percent higher than the same month last year. These were also higher than the monthly average of US $ 2.4 billion during July-April FY21.

    On a month-on-month basis, workers’ remittances fell by 10.4 percent in May 2021 compared to April 2021. This fall was expected as remittances usually slow in the post Eid-ul-Fitr period. As Eid fell in mid-May 2021 with markets closed a week earlier, there was some front-loading of remittances in April 2021. However, the seasonal decline in May 2021 was less the half the average decline observed during FY2016-2019. In FY2020, remittances experienced an exceptional rise due to the easing of Covid lockdowns in the post-Eid period in Gulf countries.

    On a cumulative basis, remittances surged to US $ 26.7 billion during July – May FY21, higher by 29.4 percent over the same period last year. Remittances during the first eleven months of FY21 have already crossed the full FY20 level by $3.6 billion.

    Remittance inflows during July-May FY21 were mainly sourced from Saudi Arabia ($7.0 billion), United Arab Emirates ($5.6 billion), United Kingdom ($3.7 billion) and the United States ($2.5 billion).

    Record high inflows of workers’ remittances during FY21 have been driven by proactive policy measures by the Government and SBP to incentivize the use of formal channels, curtailed cross-border travel in the face of COVID-19, altruistic transfers to Pakistan amid the pandemic, and orderly foreign exchange market conditions.

  • Remittances hit all-time monthly high of $2.8bn in April

    Remittances hit all-time monthly high of $2.8bn in April

    KARACHI: State Bank of Pakistan (SBP) on Tuesday said that the inflow of workers’ remittances rose to an all-time monthly high of $2.8 billion in April 2021, which is 56 percent higher than during the same month last year.

    On a cumulative basis, remittances have also surpassed previous records. At $ 24.2 billion in July-April FY21, remittances grew by 29 percent over the same period last year and have already crossed the full FY20 level by more than $1 billion.

    Remittance inflows during July-April FY21 were mainly sourced from Saudi Arabia ($6.4 billion), United Arab Emirates ($5.1 billion), United Kingdom ($3.3 billion) and the United States ($2.2 billion).

    Proactive policy measures by the Government and SBP to encourage more inflows through formal channels, curtailed cross border travel in the face of COVID-19, altruistic transfers to Pakistan amid the pandemic, orderly foreign exchange market conditions and, more recently, Eid-related inflows have contributed to record levels of remittances this year.

  • ECC approves Rs10 billion as reimbursement of transfer charges to banks

    ECC approves Rs10 billion as reimbursement of transfer charges to banks

    ISLAMABAD: Economic Coordination Committee of the Cabinet (ECC) on Wednesday approved Rs10 billion for re-reimbursement of telegraphic transfer charges to the banks on home remittances.

    Federal Minister for Finance and Revenue Shaukat Tarin chaired the meeting.

    The Technical Supplementary Grants were approved by ECC in its meeting held on Wednesday:

    • Rs.10 billion for the Finance Division for re-imbursement of telegraphic transfer charges to the banks on home remittances to encourage overseas Pakistanis to remit money through formal banking channels.

    • Allocation of funds for the National Disaster Management Authority (NDMA) for procurement of oxygen gas and delivery mechanism for import of 6,000 MT of oxygen amounting to Rs. 1800 million to meet the emergency requirement for supply of oxygen to hospitals for treatment of COVID-19 patients.

    • Rs. 115 million for the Ministry of Defence for the up-gradation of health care facilities at Cantonment General Hospital, Rawalpindi.

    • Rs. 800 million to the Ministry of Defence Production for the payment of outstanding loan to the National Bank of Pakistan (Bahrain).

    • Rs. 8 million for the Ministry of Information and Broadcasting to clear the pending liabilities of “Implementation Tribunal for Newspaper Employees (ITNE)”.

    • Rs. 571.216 million for the Ministry of Law and Justice for the construction of Islamabad High Court Building.

    • Rs. 350 million for the Ministry of Law and Justice for a new building of the Supreme Court Branch Registry Karachi.

    • Rs. 198.017 million for running Isolation Hospital and Infections Treatment Center, Islamabad for treatment of COVID-19 patients.

    • Rs. 27.5 billion for National Disaster Management Fund to complete NDMA’s component under Karachi Transformation Plan.

    • Rs. 48.337 million for the Ministry of Parliamentary Affairs for meeting its various operational expenses.

    • Rs. 17.739 million for the Geological Survey of Pakistan (GSP) to repair important laboratory equipment.

    • Rs. 1563.046 million for the Ministry of Federal Education and Technical Training for establishment & operation of Basic Education Community Schools.

    • Rs. 1210.18 million for the National Commission for Human Development (NCHD) for meeting various operating expenses.

    • Rs 100 million for the Cabinet Secretariat, given as contribution from the Government of Punjab for Pakistan Tourism Development Endowment Fund.

    Federal Minister for Privatization Muhammad Mian Soomro, Federal Minister for Interior Shaikh Rashid Ahmad, Federal Minister for Economic Affairs Division Omar Ayub Khan, Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Energy Muhammad Hammad Azhar, Federal Minister for Industries and Production Makhdum Khusro Bakhtyar, Federal for National Food Security & Research Syed Fakhar Imam, Federal Minister for Maritime Affairs Ali Haider Zaidi, Adviser to the PM on Commerce Abdul Razak Dawood, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Finance and Revenue Dr. Waqar Masood, SAPM on Power & Petroleum Tabish Gauhar, Federal Secretaries, Chairman BOI and other senior officers participated in the meeting.

    Governor State Bank of Pakistan Reza Baqir also joined through a video link.

  • Workers’ remittances grow to $21.47bn in first nine months

    Workers’ remittances grow to $21.47bn in first nine months

    KARACHI: The inflow of workers’ remittances has registered 26 percent growth to $21.47 billion during first nine months (July – March) 2020/2021, State Bank of Pakistan (SBP) said on Monday.

    The inflow of remittances was $17 billion during the same period of the last fiscal year.

    The SBP said that workers’ remittances extended their unprecedented streak of above $2 billion for the 10th consecutive month in March 2021.

    Remittances rose to $2.7 billion in March 2021, 20 percent higher than last month and 43 percent higher than March 2020.

    Cumulatively during July-Mar FY 21, remittances have risen to $21.5 billion, up by 26 percent over the same period of FY20.

    Remittance inflows during Jul-Mar FY21 were mainly sourced from Saudi Arabia ($5.7 billion), United Arab Emirates ($4.5 billion), United Kingdom ($2.9 billion) and the United States ($1.9 billion).

    Proactive policy measures by the Government and SBP to encourage more inflows through formal channels, limited cross border travel in the face of the COVID-19, medical expenses and altruistic transfers to Pakistan amidst the pandemic, and orderly foreign exchange market conditions are continuing to contribute to this sustained rise in workers’ remittances.

  • Remittances surge by 24 percent in eight months

    Remittances surge by 24 percent in eight months

    KARACHI: The inflow of workers’ remittances has increased by 24 percent to $18.74 billion during first eight months (July – February) 2020/2021, according to data released by State Bank of Pakistan (SBP) on Thursday.

    The SBP received $15.104 billion as workers’ remittances during the same months of the last fiscal year.

    The inflows during the month of February 2021 also posted 24 percent increase to $2.26 billion when compared with $1.82 billion in the same month of the last year.

    The inflows recorded robust growth of 46.7 percent, 56.8 percent and 19.5 percent from USA, UK and Saudi Arabia, respectively, during first eight months of the current fiscal year.

  • Workers remittances grow by 24 percent in seven months

    Workers remittances grow by 24 percent in seven months

    KARACHI: The remittances sent by the overseas Pakistani workers posted 24 percent growth during the first seven months of the current fiscal year as the inflows of remittances exceeded over $2 billion for eight consecutive months, State Bank of Pakistan (SBP) said on Monday.

    The overseas Pakistani workers have sent $16.47 billion during July – January of fiscal year 2020/2021 as compared with $13.28 billion in the corresponding period of the last fiscal year.

    The SBP said that workers’ remittances had exceeded $2 billion for the eighth consecutive months in January 2021.

    The inflows of workers remittances posted growth of 19.50 percent to $2.27 billion in January 2021 as compared with $1.9 billion in the same month of the last year. However, remittances were lower from the December 2020 level of $2.4 billion.

    A large part of workers’ remittances during July-January 2020/2021 was sourced from Saudi Arabia ($4.5 billion), United Arab Emirates ($3.4 billion), United Kingdom ($2.2 billion) and United States ($1.4 billion).

    This sustained increase in workers’ remittances largely reflects growing use of banking channels that is attributed to continuous efforts by the government and SBP to attract inflows through official channels, limited cross border travel amid the second wave of COVID-19 and flexible exchange rate regime.

  • Remittances to remain strong for financing trade deficit: finance ministry

    Remittances to remain strong for financing trade deficit: finance ministry

    ISLAMABAD: The ministry of finance on Monday hoped the inflows of remittances to remain strong enough to support the financing of the trade deficit in coming months.

    In its monthly economic update and outlook – January 2021, the ministry said that the sudden surge in imports due to the increase in international oil prices and import of additional food products enhanced imports by $ 1.2 billion alone in December 2020 ($ 5.0 billion) compared to December 2019 ($ 3.8 billion).

    “However, there was no pressure on foreign reserves as Current Account remained in surplus for H1 FY 2021. Looking forward, depending on these explanatory factors, imports may remain $ 4.5 – $ 5.0 billion in next month,” the ministry said.

    Exports are expected to stabilize around current levels, it added.

    “But in the baseline scenario, the trade balance is not expected to further deteriorate. Remittance inflows remain strong and continue to provide strong support to the financing of the trade deficit,” the ministry said.

    The finance ministry said that Pakistan’s economy consecutively suffered from Balance of Payment (BOP) crisis and COVID-19 pandemic kept economy below its potential level.

    Since the start of current fiscal year, economy has started recovering. The government is committed to monitor external balance and its financing closely.

    Furthermore, the government has also taken policy and administrative measures to monitor the supply and market functioning wherever necessary to mitigate inflationary pressure.

    The restoration and acceleration of Pakistan’s productive capacity is a necessity to ensure a high and sustainable growth in the near and longer term. In the near future, the economic recovery is expected to translate into more productive investment expenditures.

    The government is committed to motivate investments in crucial sectors of the economy to enhance productive capacities and to stimulate economic growth.

    Fiscal performance remained satisfactory. Currently, the fiscal policy actions are primarily concentrated on relief measures to support businesses stay afloat and to protect vulnerable segments of society.

    At the same time, the government is focused on containing the fiscal deficit at a manageable level and keeping the primary balance at a sustainable level.

    According to latest fiscal numbers, healthy growth in non-tax revenues, satisfactory performance of FBR tax collection despite issuance of higher number of refunds and controlling of expenditures other than mark-up payments and COVID related would pave the way to maintain the fiscal deficit within the reasonable limits in coming months, the ministry said.

    The finance ministry said that the current outlook ensures economic revival on the basis of continued recovery seen in recent months but there is possibility of slower economic activities especially in services sector depending on the intensity and duration of pandemic.

  • SBP launches survey to analyze trends in remittances

    SBP launches survey to analyze trends in remittances

    KARACHI: State Bank of Pakistan (SBP) on Thursday launched a survey of Overseas Pakistanis to analyze recent trends in remittances and the future outlook.

    The central bank launched the survey in collaboration with Ministry of Planning, Development and Special Initiatives (MPD&SI).

    The survey will be available to all Overseas Pakistanis globally till January 9, 2021.

    The survey attempts to assess underlying factors that may have affected recent remittances behavior, including switching from informal to formal channels, from brick and mortar outlets to digital platforms, future plans of moving back to Pakistan, as well as the amount of remittances they expect to send in the next six months.

    With the support of the Ministry of Overseas Pakistanis and Human Resource Development (MOPHRD), Ministry of Commerce, Ministry of Foreign Affairs (MOFA) and Pakistan Remittance Initiative (PRI), this survey is being conducted simultaneously at Pakistani Consulates and Embassies, Overseas Bank Branches of Pakistani Banks as well as online.

    SBP and MPD&SI encourage Overseas Pakistanis to actively participate in this short online survey. The survey is very easy to access through the following web link: https://surveyctosbp.surveycto.com/collect/survey_on_recent_remittance_behavior_of_overseas_pakistanis?caseid

  • Remittances grow 27 percent during July – November

    Remittances grow 27 percent during July – November

    KARACHI – The State Bank of Pakistan (SBP) reported a significant 27% growth in workers’ remittances during the first five months (July-November) of the current fiscal year (FY21), underscoring a resilient trend in foreign inflows facilitated through formal channels.

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  • Workers’ remittances increase by 26.5pc in July – October

    Workers’ remittances increase by 26.5pc in July – October

    KARACHI: The inflow of workers’ remittances has sharply increased by 26.5 percent to $9.43 billion during first four months (July – October) of current fiscal year 2020/2021, State Bank of Pakistan (SBP) said on Thursday.

    The central bank received $7.45 billion in the same months of the last fiscal year.

    The SBP said that remittances remained above $2 billion for the fifth consecutive month in October 2020.

    Workers’ remittances amounted to $ 2.3 billion during October 2020, increasing by 14.1 percent compared to October 2019.

    A large part of y/y increase in October 2020 was sourced from Saudi Arabia (30 percent), United States (16 percent) and United Kingdom (14.6 percent).

    Improvements in Pakistan’s FX market structure and its dynamics, efforts under the Pakistan Remittances Initiative (PRI) to formalize the flows contributed to the growth in remittances and limited cross-border travelling, the SBP said.