KARACHI: Pakistan received seven months’ high $2.5 billion home remittances during March 2023, mainly due to rise in seasonal inflows and improved exchange rate.
The State Bank of Pakistan (SBP) on Monday reported that in terms of growth inflows of workers’ remittances rose by 27 percent to reach $2.533 billion in March 2023 compared to $1.988 billion in February 2023.
Inflows of workers’ remittances were decline since September 2022 as the exchange rate in the informal marker was higher than interbank or legal channel, of which overseas Pakistanis were sending limited remittances to the beloveds in the country. The
cap on the exchange rate was lifted by the State Bank of Pakistan (SBP) in the last week of February and the depreciation of the rupee encouraged Pakistani migrants to send money home through legitimate banking channels, and the holy month of Ramazan also helped to improve the inflows.
Analysts said that this is a seasonal rise due to the ongoing month of Ramadan, where a lot of funds are remitted on account of Zakat and other charities, which is reflected in the increase in remittances.
In addition, overseas Pakistanis send funds via official channels such as banks instead of the illegal Hawala-Hundi channels as they are getting better rate in the interbank market after a significant depreciation in the Pak rupee against the US dollar, they added.
Year-on-year basis, remittances decreased by 11 percent in March 2023 compared to March 2022, in which home remittances worth $2.845 billion were arrived.
Remittances inflows during Mar 2023 were mainly sourced from Saudi Arabia worth $563.9 million, United Arab Emirates $406.7 million, United Kingdom $422 million and United States of America worth $316 million.
Cumulatively, workers’ remittances decreased by 10.8 percent during the first nine months of this fiscal year compared to the same period last year. Pakistan received inflow amounted to $ 20.527 billion during July-March of FY23 as against $ 23.018 in same period of last fiscal year (FY22).
Home remittances inflows from Saudi Arabia declined by 15 percent to $4.9 billion in the first nine months of this fiscal year down from $5.828 billion. However, still the Saudi Arabia is largest contributor to the overall inflows with 24 percent share.
During the period under review, inflows from UK also declined by 4.4 percent to $3.053 billion. While, workers’ remittances from US surged by 3.2 percent to $2.288 billion in July-March of FY23 compared to $ 2.218 billion in same period of last fiscal year.
Copyright Business Recorder, 2023