Remittances: $2.8bn record inflows received in March

KARACHI: Inflows of workers’ remittances maintained unprecedented growth surging to $ 23 billion in the first nine months of this fiscal year (FY22).

According to the State Bank of Pakistan (SBP), in terms of growth home remittances rose by 7 percent or $1.516 billion during the first nine months of FY22. Pakistan received inflows worth $22.95 billion in July-March FY22 compared to $21.436 billion received in the same period of the last fiscal year (FY21).

Month-on-month basis, workers’ remittances remained over $2 billion and with 28.3 percent growth Pakistan received highest-ever monthly inflows during March 2022.

Inflows amounting to $ 2.8 billion arrived during March 2022 compared to $2.19 billion in February 2022, showing an increase of $ 610 million. Year-on-year (YoY) basis, it mounted up by 3.2 percent in March 2022 compared to March 2021, in which inflows amounting to $2.72 billion were arrived.

Analysts said that the recent surge in the home remittances inflows comes on the back of the Ramazan factor as the overseas Pakistanis sent more amount to their families ahead of Ramazan and Eid-ul-Fitr.

They said that with the current growth rate, it is expected that home remittances will cross $ 30 billion by the end of June 2022.

Remittances up 2% month-on-month, amount to $2.2bn in February

As the country’s foreign exchange reserves are depleting due to external debt servicing, the country is heavily relying on foreign inflows to build its foreign reserves.

Saudi Arabia is the largest contributor in the workers’ remittances with $5.8 billion inflows during July-March FY22 up from $5.73 billion I n same period of last fiscal year. Home remittances amounted to $4.28 billion arrived from United Arab Emirates, $3.187 billion from United Kingdom and $2.21 billion from United States of America.

Remittance inflows during March 2022 were mainly sourced from Saudi Arabia worth $678 million, United Arab Emirates $515 million, United Kingdom $401 million and United States of America $300 million.

Copyright Business Recorder, 2022