The UAE was the fastest-growing source of remittances to Pakistan month-on-month in March compared to the previous year at 8.6 per cent, followed by Saudi Arabia (7.2 per cent) and the US (5.5 per cent), reported Khaleej Times.

Ahmed Shaikhani, vice-president of Pakistan Business Council Dubai, said remittances from the UAE and other countries surged because of both individuals and businesses remitting more funds due to uncertainty that prevailed in the region from the beginning of March with the outbreak of Covid-19. But the outlook for the next three months is bleak due to job losses in the Gulf region, which is home to a large chunk of overseas Pakistanis.

"The dirham became stronger against the rupee and helped attract more remittances to Pakistan. Plus, expats sent more funds in advance, fearing restrictions on movements or bank operations," he said.