Inflow of overseas workers’ remittances saw a significant decline and clocked in at $2.2 billion in April 2023, a decrease of 12.9% on a month-on-month basis, as compared to $2.5 billion in March 2023, showed data released by the State Bank of Pakistan (SBP) on Wednesday.
On a year-on-year basis, the inflow of remittances registered a massive decline of 29%. In April 2022, the amount stood at $3.12 billion, data showed.
On a cumulative basis, the inflow of remittances during the July to April of fiscal year 2022-23 stood at $22.742 billion, 13% lower than $26.143 billion in the same period of the previous fiscal year.
“In March, higher remittances were witnessed on account of Ramadan factor. Same was the case in April last year, which saw a major part of Ramadan,” Tahir Abbas, Head of Research at Arif Habib Limited (AHL), told Business Recorder.
Pakistan reports massive current account surplus of $654mn in March
The market expert, however, brushed off concerns that the remittance decline would have a significant impact on the country’s macroeconomic indicators.
“Despite the decline in remittances, we expect a current account surplus to the tune of $500-600 million in April,” he said.
Pakistan’s current account posted a massive surplus of $654 million in March 2023 against a (revised) deficit of $36 million in February 2023, SBP data showed earlier.
Breakdown of remittances
Overseas Pakistanis in Saudi Arabia remitted the single largest amount in April 2023 as they sent $489.3 million during the month. This was nearly 31% lower than the $705 million sent by expatriates in the same month of the previous year.
Remittances from the United Arab Emirates amounted to $382 million during the month, a decline of 38% compared to $614 million in April 2022.
Inflows from the United Kingdom plunged 25% as they decreased from $484 million in April 2022 to $361 million in April 2023.
Moreover, remittances from the European Union reduced by 13% as they amounted to $257 million in April 2023.
Overseas Pakistanis in the US sent $276 million in April 2023, a year-on-year decline of 21%.