KARACHI: Workers’ remittances to Pakistan have experienced a significant boost, surging by 31% during the first two months of the current fiscal year. This sharp increase is attributed to initiatives by the State Bank of Pakistan (SBP), which have facilitated the inflow of remittances from Pakistani workers abroad.
According to data released by the SBP on Monday, remittances reached $4.86 billion during July and August 2020, compared to $3.71 billion during the same period in the previous fiscal year. This impressive growth underscores the effectiveness of the measures implemented by the central bank under the Pakistan Remittances Initiative (PRI).
In August 2020 alone, remittances rose by 25%, totaling $2.1 billion compared to $1.68 billion in August of the previous year. Notably, August marked the third consecutive month where remittances remained above the $2 billion mark, highlighting a sustained upward trend.
Over the last three months, remittances have reached an unprecedented level of $7.3 billion, reflecting a 37.2% increase from the same period last year. This remarkable growth is partly due to the gradual reopening of businesses in key host countries, including the Middle East, Europe, and the United States, where a significant number of Pakistani expatriates reside.
The top three countries contributing to this inflow in August were Saudi Arabia, the United Arab Emirates, and the United Kingdom. Saudi Arabia led the list with remittances amounting to $593 million, followed by the UAE with $410 million, and the UK with $302 million.
However, on a month-on-month basis, August remittances were 24.3% lower than the record level of $2.768 billion posted in July. This decline is primarily attributed to the typical seasonal drop following the Eid-al-Adha period.
The SBP’s initiatives, particularly under the PRI, have played a crucial role in facilitating these remittance flows. The PRI aims to simplify the process for Pakistani workers to send money home, offering incentives and ensuring faster and more secure transactions.
This surge in remittances is a positive development for Pakistan’s economy, providing much-needed foreign exchange and supporting the country’s balance of payments. As the global economy continues to recover from the impacts of the COVID-19 pandemic, the steady inflow of remittances is expected to remain a vital source of financial support for many Pakistani families and the broader economy.
In conclusion, the substantial increase in remittances during the initial months of the fiscal year highlights the resilience and commitment of the Pakistani diaspora in supporting their homeland, as well as the success of the SBP’s strategic initiatives.
