KARACHI: The State Bank of Pakistan has reported that remittances from overseas Pakistani workers jacked up 3.31 percent to $11.394 billion in the first six months of the current fiscal year of 2019-20.
According to central bank data released the other day, the inflow of workers’ remittances amounted to $2.097 billion in December, which was 15.25 percent higher than the previous month and 20 percent higher than December 2018.
The surge in remittances was driven by acceleration in these flows from the United States, the United Kingdom followed by the European Union countries. According to the SBP, despite a global economic slowdown in 2019, the inflows from the US and UK remained healthy.
But, inflows remained flat from the main source like the Middle East due to tight employment conditions in that region. Pakistani workers residing in Saudi Arabia sent home $2.618 billion in July-December Fiscal Year 2020, compared with $2.567 billion sent in the corresponding period of Fiscal Year 2019.
Remittances from the United Arab Emirates remained at $2.349 billion in July-December in Fiscal Year 2020 compared with $2.348 billion last year. Inflows from the United States increased 9.08 percent to $1.889 billion in the first half of this fiscal from $1.732 billion a year ago. The country attracted $1.753 billion from the UK, compared with $1.647 billion last year. Remittances from the EU countries rose 8.42 percent to $339.24 million.
The SBP data showed that Pakistani workers living in other Gulf Cooperation Council countries sent home $1.089 billion in remittances, which were 3.17 percent higher as compared to last year.
Experts said the transfer of funds would expectedly reach $22.5 to 23.5 billion this fiscal year, in line with the SBP’s projection. Remittances stood at $21.8 billion in FY19.
The SBP in its first quarterly report forecast better outlook for remittances, which reflects the ongoing efforts by the Pakistan Remittance Initiative (PRI) and the government to increase transmittal through formal channels into the country.
“For instance, the PRI has aided the Pakistan Post and the National Bank of Pakistan to jointly enhance their tie-ups with 41 money transfer operators in the United Arab Emirates and Saudi Arabia during the current year,” the SBP’s report said.
“Also, under the ‘foreign remittance initiative’ project, families of Pakistani workers can receive remittances from 240 branches of Pakistan Post for free,” the report concluded.
