–On a cumulative basis, remittances increased 6.4pc to $23.1bn in FY20, as compared to $21.7bn in FY19
–SBP attributes the ‘record’ jump in June remittances to easing of lockdowns by different countries, which helped overseas Pakistanis to transfer cumulative funds
Workers’ remittances surged by an impressive 50.7pc to $2.466 billion in June 2020, as compared to $1.636 billion received in the same month of last year.
As per the data released by the State Bank of Pakistan (SBP) on Twitter, workers’ remittances, on a cumulative basis, increased to the ‘historical level’ of $23,120.7 million in FY20, witnessing a growth of 6.4pc over $21,739.4 million in FY19.
1/2Workers’ remittances rose by 51% during Jun20 to reach record high $2,466.2 mn compared with $1,636.4 mn in Jun19. Cumulatively, it increased to historic high of $23,120.7 mn in FY20, growing by 6.4% over $21,739.4 mn in FY19. See https://t.co/ExI3gK49Sk
— SBP (@StateBank_Pak) July 13, 2020
During the March-June 2020 pandemic period, the inflow of workers’ remittances registered an increase of 7.8pc compared with the corresponding period of 2019, it added.
2/2During March-June 2020 Covid19 pandemic period, workers’ remittances registered an increase of a 7.8% compared with the corresponding period of 2019.
— SBP (@StateBank_Pak) July 13, 2020
As per the SBP’s data, workers’ remittances received from Saudi Arabia ($619.4 million), USA ($452.0 million), UAE ($431.7 million) and UK ($401 million) registered an increase of 42pc, 7.1pc, 33.5pc and 40.8pc respectively, during the month of June 2020, as compared to May 2020.
The central bank attributed the significant increase in June remittances to a number of factors, including easing of lockdown by many of these countries in June, owing to which overseas Pakistanis were able to transfer accumulative funds.
“Also, more remittances were sent by overseas Pakistanis to support extended families and friends due to economic problems arising from Covid-19.”
SBP stated that prudent policies, including an extension of the Reimbursement of TT Charges Scheme (Free Send Remittance Scheme) to small remitters by reducing the threshold from $200 to $100, as well as broadening the scope of an incentive scheme for financial institutions that increased the incentives on sending remittances through regular channels, also played a part in the remittance surge.
Major reason for this is a lot of people lost their jobs and they transfer their gratuity and savings in 1 shot. I hope July doesn’t slump drastically and remains stable during this crisis.
Another reason can be “people were unable to send the amount in previous months due to covid situation and they are sending it at once” Have to look for the data of previous months
How low it 2as and average remittances in last 6 months