KARACHI: Remittances from overseas Pakistani workers in May 2020 fell 18.6 percent or $429.2 million compared to $2.3 billion recorded in May 2019, according to data released by the State Bank of Pakistan (SBP) on Monday.
Overseas Pakistani’s remitted a total of $1.87 billion in May 2020, a rise of $82.8 million or 4.6 percent, compared with $1.79 billion worth of remittances received in April 2020.
The remittances recorded in May 2019 were the highest recorded monthly figure of that year, which explains the drastic year-on-year percentage drop.
In explaining the figures, the central bank said that job losses of overseas workers and closure of international borders because of the Covid-19 pandemic were the main factors affecting remittances flow.
The SBP also noted that last year, the whole month of Ramadan fell in May 2019 which caused a spike in remittances during the month.
Workers’ remittances received during the first 11 months of the current fiscal year stood at $20.65 billion, an increase of 2.7 percent or $551.5 million compared to $20.1 billion received during the same period of last year.
When comparing remittances received during May 2020 and that received in April 2020, some countries experienced an increase, while others experienced a decrease.
According to the data, remittances received from Saudi Arabia and United Arab Emirates stood at $436.2 million and $323.4 million respectively.
However, remittances from the United States of America (USA) and the United Kingdom (UK) stood at $428.3 million and $284.8 million respectively.
Monthly figures for remittances have generally fluctuated between $1.9 billion and $1.8 billion since the start of 2020. The year 2019 saw much more variation in terms of remittances, with a low of $1.6 billion and a high of $2.3 billion.
This trend of stable remittances in 2020 is subject to change, however, as the Covid-19 pandemic affects the employment of Pakistanis working abroad.
A fall in remittances, along with a fall in exports, may exert some pressure on net SBP reserves. Reserves have dropped to $10.096 billion during the week ending June 5, 2020, according to the latest SBP data, and there is a concern that reserves may fall to below single digits later this year.
It is excellent description even informative. It takes time to enhance remittance. It will enhance gradually on gov’t revenues and further use for the public interest.