ISLAMABAD: Inflows from overseas Pakistanis declined by 7.4 per cent in October when compared to a month earlier even though cumulative remittances reached a record $10.6 billion during the first four months (July-October) of the current financial year.

“At $2.5bn in Oct21, remittances continue their strong streak, rising by 10pc from Oct20 and only moderating marginally compared to Sep21,” the State Bank of Pakistan (SBP) said in a tweet on Sunday. Remittances in September amounted to $2.7bn.

Cumulatively, remittances from overseas Pakistanis have risen to $10.6bn so far in FY22, up 12pc over the same period last year, the central bank added.

Until end-September this year, remittances posed 12.5pc growth over the comparable period last year, but a decline in October scaled the four-month growth down to 12pc.

The SBP said that in addition to remaining above $2bn since June 2020, “this is the eighth consecutive month when remittances have been close to or above $2.5 billion”. On a cumulative basis, remittances rose to $10.6bn during the first four months of FY22, which is 11.9pc higher than the same period last year.

The surging imports during the July-October period have widened the trade deficit, putting significant pressure on the rupee-dollar exchange rate which ultimately reflected in higher current account deficit. The situation for the economic managers is not comfortable, except the higher remittance supported the economy beyond imagination.

The country had received record remittances of $29.4bn in FY21 which helped it curtail the current account deficit. The central bank reported that remittance inflows during the first four months of FY22 stood highest at $2.7bn from Saudi Arabia, followed by $2bn from the United Arab Emirates, $1.5bn from the United Kingdom and $1.1bn from the United States.

The SBP claimed credit for the higher remittances, saying proactive policy measures by the government and the bank to incentivise the use of formal channels and altruistic transfers to Pakistan amid the coronavirus pandemic have positively contributed towards a sustained improvement in remittance inflows since last year.

Independent observers, however, suggested that restrictions on air travel were also a key reason behind inflows through formal channels.

Published in Dawn, November 15th, 2021

Opinion

Editorial

Crime against humanity
Updated 03 Dec 2021

Crime against humanity

The government has yet to fulfil its long-standing pledge to criminalise enforced disappearances.
03 Dec 2021

Revised valuations

THE revised property valuations notified by the FBR for 40 cities for the purpose of collecting federal taxes —...
03 Dec 2021

PWD await rights

ON the International Day of Disabled Persons, it is important to take stock of how far Pakistan has come in ensuring...
02 Dec 2021

Funding for polls

THE PTI government’s autocratic mentality is again on full display, even as it feigns adherence to the law....
02 Dec 2021

Soaring prices

PRICES are surging. And they are increasing at a much faster pace than anticipated, burdening millions of...
Ali Wazir’s bail
Updated 02 Dec 2021

Ali Wazir’s bail

IT has been a long time coming, but MNA and Pashtun Tahaffuz Movement leader Ali Wazir has finally been granted bail...