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

1971 in retrospect
Updated 28 Nov, 2022

1971 in retrospect

The point of no return came when the military launched Operation Searchlight in March 1971.
Gender-based violence
28 Nov, 2022

Gender-based violence

IT is a war without boundaries and seemingly without end. A UN report on femicide released on Nov 25, the...
Battle against dacoits
28 Nov, 2022

Battle against dacoits

THE Punjab police is clearly fighting a formidable, and so far losing, battle against the criminal gangs based in ...
Policy rate hike
Updated 27 Nov, 2022

Policy rate hike

The decision to hike the policy rate by 100bps is a step in the right direction, even if intended to appease the IMF.
Vawda’s reprieve
27 Nov, 2022

Vawda’s reprieve

FAISAL Vawda should be relieved. After years of running from a reckoning for submitting a false declaration in his...
Gujarat’s ghosts
27 Nov, 2022

Gujarat’s ghosts

TWO decades have passed since the bloody Gujarat riots, one of the worst spasms of anti-Muslim violence witnessed in...