July-August remittances post big fall
- Pakistan receives workers’ remittances amounting to $ 4.12 billion in July-Aug of FY24
KARACHI: Inflows of home remittances posted a decline of 22 percent during the first two months of this fiscal year (FY24), the State Bank of Pakistan (SBP) reported on Monday.
According to the SBP, Pakistan received workers’ remittances amounting to $ 4.12 billion in July-Aug of FY24 compared to $ 5.25 billion in the same period of last fiscal year (FY23), depicting a massive decline of 21.6 percent or $ 1.13 billion.
Inflows of home remittance from all major corridors witnessed declining trend. Remittances from Saudi Arabia-the largest contributor in overall inflows, fell 23 percent to $ 977 million in the first two months of this fiscal year. During the period under review, inflows from United States of America (USA) and United Kingdom (UK) dropped by 7.6 percent and 18 percent to $ 504 million and $ 638 million respectively.
During the July-Aug of FY24, overseas Pakistanis from United Arab Emirates (UAE) sent home remittances amounted to $623 million, down by 37.4 percent.
Jul remittances down 19.3pc to $2.027bn YoY
Month on Month basis, in terms of growth home remittances rose by 3.1 percent or $ 70 million during Aug 2023 compared to July 2023. Workers’ remittances recorded an inflow of $2.1 billion during Aug 23 as against $ 2.03 billion in July 2023.
On a yearly basis, the monthly inflow of remittances also registered a decrease of 24 percent in August 2023 compared to August 2022, in which Pakistan secured $ 2.74 billion home remittances.
Remittances inflows during Aug 2023 were mainly sourced from Saudi Arabia worth $490.1 million, UK $331.3 million, UAE $ 308.0 million and USA $262.4 million.
The cash strapped country is seeking healthy foreign inflows to build the depleting foreign exchange reserves and avoid default on debt servicing. Pakistan received highest ever remittances $31.27 billion in FY22 and with a decline of 13 percent remittances inflows were stood at $ 27 billion in FY23.
As the inflows of remittances play an important role in supporting the country’s external account, the state bank and government are making efforts to bring more remittances into the country to reduce the pressure on external account.
Copyright Business Recorder, 2023
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