• The highest inflow was recorded from Saudi Arabia which increased to $7.01bn
• Govt hopes to collect $29bn by end of June

KARACHI: Remittances being sent by overseas Pakistani workers increased by 34 per cent in May, giving a much-needed boost to the government’s hope to collect up to $29 billion by the end of the current fiscal year (FY21).

According to State Bank’s data issued on Thursday, Pakistan received $2.49bn in May, compared to $1.865bn received during the same month of last fiscal year (FY20), an increase of $625 million or 34pc.

During the first 11 months (July-May FY21), the country received $26.736bn, an increase of 29pc or $6.077bn. Finance Minister Shaukat Tarin said on Thursday that the country might receive around $29bn by the end of the current fiscal year.

The highest inflow was recorded from Saudi Arabia as it rose to $7.01bn during 11 months. Remittances from the kingdom increased by 19.5pc compared to 25.6pc growth recorded during the same period last year.

Pakistan received the second highest remittances from the United Arab Emirates that increased by 9.7pc to $5.588bn. During the same period last year, remittances were $5.095bn while the growth was 19.6pc.

The highest increase was noted from the United Kingdom which went up 66.6pc during the period under review as remittances reached $3.696bn against $2.219bn of last year. The growth was negative by 29.4pc in FY20.

In case of the United States, remittances inflow witnessed almost the same situation as it jumped by 58pc, compared to 48pc decrease during the same period of the last fiscal. Remittances from the US rose to $2.477bn, compared to 1.566bn in the previous year.

The inflow from other GCC countries also went up to 14pc, increasing remittances $3.017bn during 11 months of FY21. During the same period last fiscal, the inflow noted a growth of 35.5pc to $2.648bn.

While the inflow from EU countries jumped to 55.4pc, the previous inflow was much higher as it noted a growth of 182pc. The inflow from EU states was $2.436bn in 11 months of FY21, compared to $1.568bn during the same period last fiscal year.

Remittances in April this year were all-time high of $2.8bn, which was 56pc higher than the inflow recorded during the same month last year.

The inflow of $26.7bn during FY21 has supported the government to maintain its foreign exchange reserves.

Published in Dawn, June 11th, 2021