Remittances exceed $2bn for 12th straight month with highest inflows from Saudi Arabia, UAE

Published June 10, 2021
Cumulatively, remittances surged to $26.7 billion during July-May this fiscal year. — AFP/File
Cumulatively, remittances surged to $26.7 billion during July-May this fiscal year. — AFP/File

Remittances from Pakistani workers employed abroad exceeded $2 billion for the 12th month in a row in May 2021, with the State Bank of Pakistan (SBP) crediting “proactive policy measures by the Government and the State Bank of Pakistan encouraging expats to use formal channels for their transactions" for the record inflows.

The statement added that curtailed cross border travel in the face of Covid-19, altruistic transfers to Pakistan amid the pandemic, and orderly foreign exchange market conditions have contributed to record levels of remittances this year.

"On a cumulative basis, remittances surged to $26.7bn during July-May this fiscal year, higher by 29.4 per cent over the same period last year," the SBP said. "Remittances during the first eleven months of the outgoing fiscal year have already crossed the full FY20 level by $3.6bn," it added.

According to the central bank, “Remittances received during May 2021 amounted to $2.5bn, which is 33.5pc higher than the same month last year. These were also higher than the monthly average of $2.4bn during July-April in the fiscal year 2020-21.”

However, on a month-on-month basis, workers’ remittances fell by 10.4pc in May 2021, compared to last month, when it rose to an all-time high of $2.8bn. “This fall was expected as remittances usually get slower in the period post Eidul Fitr,” the SBP underlined.

The central bank explained that “the seasonal decline in May 2021 was less than half the average decline observed during fiscal years 2016-2019. While in FY2020, remittances experienced an exceptional rise due to the easing of Covid lockdowns in the post-Eid period in Gulf countries.”

It further said the remittance inflows during July-May FY21 were mainly sourced from Saudi Arabia ($7bn), United Arab Emirates ($5.6bn), United Kingdom ($3.7bn) and the United States ($2.5bn).

Opinion

Royal taxidermy
16 Sep 2021

Royal taxidermy

The king’s death was hastened so it could be announced in the morning papers.
A great leap backward
Updated 15 Sep 2021

A great leap backward

Courses appear to reinforce a closed mindset and have nothing to do with the requirements of a modern education system.

Editorial

Aid for Afghans
16 Sep 2021

Aid for Afghans

Humanitarian aid can resume even if the world decides to hold back on formal recognition of the regime for now.
16 Sep 2021

Wheat price

THE government’s decision to raise the wheat release price, or the rate at which provinces issue their grain ...
16 Sep 2021

Keeping the press out

ON Monday, the government yet again displayed its rising contempt for the freedom of press — this time in...
15 Sep 2021

Election trends

THE cantonment board elections are over and their results offer an opportunity for introspection to all major...
15 Sep 2021

Grace marks

THE decision to promote all students awaiting the results of their board exams by awarding grace marks is likely to...