KARACHI: Remittances from overseas Pakistanis rose six per cent to $12.7 billion from $11.986bn during the first eight months (July-February) of this fiscal year, the State Bank of Pakistan (SBP) said on Thursday.

In February 2016, the inflow of workers’ remittances amounted to $1.516bn, which was 3.65pc higher than January 2016 and 6.74pc higher than February 2015. The inflows fell 10pc to $1.462bn in January compared to December.

The latest data showed that Saudi Arabia, which is currently at war with neighbouring Yemen and facing steep fall in its income from record low oil prices, remained the prime source of remittances.

Experts and analysts said Saudi Arabia was under serious financial stress but had excellent relations with Pakistan as reflected from the situation that Pakistanis were facing no job cuts.

Another development that may hurt the kingdom’s income was the entry of Iran in oil markets after lifting of international sanctions.

Of the total, remittances from Saudi Arabia in July-February FY16 amounted to $3.830bn, the highest from any country.

Remittances from the United Arab Emirates (UAE) were the second highest at $2.083bn. Dubai showed the highest growth (at 35pc) in remittances during this period as inflows from the emirate jumped to $1.874bn.

Overseas Pakistanis residing in the United States and United Kingdom sent $1.739bn and $1.599bn, respectively.

Falling oil prices also helped Pakistan reduce the size of trade deficit, which has been a real cause for imbalances on external fronts. The country has so far saved about $3.3bn in oil import bill in the first seven months (July-January) of this fiscal year.

The collective impact of remittances and savings from oil import bill resulted into a cushion of about $16bn for the country, helping it maintain the reserves at $20.5bn.

Published in Dawn, March 11th, 2016

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

IMF’s firm stance
05 Feb, 2023

IMF’s firm stance

THE IMF mission has been in Islamabad since Jan 31 to complete the stalled technical and policy-level talks aimed at...
Grotesque bigotry
05 Feb, 2023

Grotesque bigotry

FREEDOM to profess one’s faith is guaranteed by the Constitution of Pakistan. However, for the country’s Ahmadi...
Kashmir reflections
05 Feb, 2023

Kashmir reflections

ASIDE from Kashmir Day, which the nation is observing today as an official holiday, there are a number of other days...
Crisis conference
Updated 04 Feb, 2023

Crisis conference

PTI's refusal to engage with the govt in such testing times will only be seen as sign of ideological bankruptcy.
Revenge politics
04 Feb, 2023

Revenge politics

A SENSE of déjà-vu prevails as cases pile up against PTI politicians, many of whom, along with their allies and...
Inappropriate remarks
04 Feb, 2023

Inappropriate remarks

OFFICIALS of the state, especially when representing the country at international forums, need to choose their words...