KARACHI: Remittances during Ramazan dropped notably year-on-year.

Latest statistics show that remittances received during June, which overlapped Ramazan, amounted to $1.84 billion against inflows of more than $2bn in the same month of the preceding fiscal year. This translates into a year-on-year decline of 11.2 per cent.

Remittances are higher than usual in Ramazan every year mostly because of Zakat and charity funds. Moreover, overseas Pakistanis tend to send home higher amounts in Ramazan for Eid.

Forex Association of Pakistan President Malik Bostan said inflows recorded in May should also be considered Ramazan related because some expatriates like to send money ahead of the holy month. Remittances were $1.86bn in May, up 3.77pc from a year ago.

However, remittances through exchange companies during the last two months of 2016-17 showed growth from last year. Inflows increased 9.7pc year-on-year to $147m in June. The annual rise in May was 15.8pc as inflows amounted to $117m.

Remittances decreased 3.08pc to $19.3bn in 2016-17. It is the first annual decline in remittances in the last 13 years. Latest data showed remittances through banks declined more than those through exchange companies.

Representatives of exchange companies said charity organisations received smaller donations this year. Overseas Pakistanis adopted a cautious investment approach, which resulted in limited inflows to property and retail sectors.

Published in Dawn, July 13th, 2017