KARACHI: Inflows of home remittances recorded a decline of 11 percent during the first half of this fiscal year (FY23) mainly due to exchange rate volatility.

According to State Bank of Pakistan (SBP), cumulatively the country has received home remittances inflows amounted to $14.1 billion July-Dec of FY23 compared to $ 15.8 billion in the same period of last fiscal year (FY22), depicting a decline of $1.7 billion.

Market sources said that a massive gap in the exchange rate of the inter-bank market and grey market is the primary reason for decline in the official inflows of home remittances. Presently, there is some Rs 30 difference in the inter-bank and grey market that is not encouraging the home remittances through official channels.

The detailed analysis revealed that inflows from all major corridors except the US witnessed a declining trend during the period under review. Workers’ remittances from Saudi Arabia fell by 14 percent of $3.47 billion in the first half of this fiscal year as against $ 4.03 billion in the corresponding period of last fiscal year.

Inflows of home remittances from the UK dropped by 8 percent to $ 2 billion, UAE 13.5 percent to $2.6 billion, GCC countries 10 percent to $1.6 billion and remittances from EU countries declined by 12 percent to $1.5 billion. However, home remittances from US rose by 2.2 percent to stood at $1.5 billion

Month on Month basis, workers’ remittances maintained the $2 billion level in December 2022. During Dec 2022, remittances decreased by 3.2 percent to $ 2.04 billion compared to $2.1 billion in November 2022.

Home remittances in December 2022 also fell by 19 percent compared to December 2021, in which $ 2.5 billion remittances arrived. Remittance inflows during Dec 2022 were mainly sourced from Saudi Arabia amounted to $516.3 million, United Arab Emirates $328.7 million, United Kingdom $314.2 million and United States of America $230.5 million.

Copyright Business Recorder, 2023