Salman Khan
Salman Khan

KARACHI: Workers’ remittances in February did not disappoint the government as the inflow stood at around $2.2 billion, showing a growth of two per cent month-on-month.

However, the inflow witnessed a year-on-year growth of 7.6pc during the first eight months (July-February) of 2021-22.

The State Bank of Pakistan (SBP) on Thursday issued the latest data of remittances showing a 2pc growth in February on a month-on-month basis. However, it fell by 2.7pc in February when compared with the same month last year.

The country received $20.141bn in remittances during the first eight months of the current fiscal year compared to $18.7bn during the same period last fiscal, showing a growth of 7.6pc.

Inflow in February rises 2pc to $2.2bn

Pakistan expects to receive around $30bn in the current fiscal year. The amount is higher than the export proceeds. However, the ongoing Russia-Ukraine conflict, which has already led to an exorbitant increase in the prices of oil and other commodities in international markets, could be more painful for oil-importing countries like Pakistan and more foreign exchange would be needed.

Pakistan is getting oil from Saudi Arabia on deferred payments which have saved a big amount of foreign exchange. However, despite this favour, the country’s foreign exchange reserves have been declining since August 2021.

The country received the highest amount of $5.132bn from Saudi Arabia, with a growth of 2.6pc during eight months of FY22. The growth was 19.3pc during the same period last fiscal year.

Though the remittances from the United Arab Emirates declined by 4pc to $3.768bn, it was still the second biggest inflow for Pakistan. Last year’s inflow from the UAE was 6pc higher. An inflow of $2.322bn was received from other GCC countries, with a growth of 8.5pc. The growth last year was 5.7pc.

Against a very high growth of 56.6pc in eight months of FY21, the inflow from the United Kingdom during the current fiscal year recorded a growth of 10.3pc to $2.786bn.

The inflow from the United States was also very high last year with a growth rate of 46.5pc, but this year remittances showed an increase of 18.2pc to $1.911bn.

In recent years, the remittances from the European Union took a prominent place in the list of the countries sending around $2bn. The remittances from the EU stood at $2.224bn during July-February FY22, an increase of 30.4pc. The growth in FY21 was 45.7pc.

Australia and Canada also emerged as important destinations for remittances. The inflows from the two countries were $492 million and $440m, respectively. The growth in inflows from Australia dropped to 26pc this year against 88pc during the same period last year. The inflow from Canada recorded a growth of 30.4pc against 80pc last year.

Published in Dawn, March 11th, 2022

Opinion

Editorial

No end to hostility
Updated 17 Aug, 2022

No end to hostility

It is time for all parties to rise above petty tactics and hostilities for political gains and pull country back from brink.
Deadly accidents
17 Aug, 2022

Deadly accidents

TWO horrific accidents on Tuesday, which resulted in high death tolls, illustrate the dangers people face while ...
New banknote
17 Aug, 2022

New banknote

PAKISTAN has a new currency note to mark the diamond jubilee of independence. The 75-rupee banknote, issued by the...
Shared goals
Updated 16 Aug, 2022

Shared goals

It is high time that all parties realise that negotiation on the economy does not need to be held hostage to political rivalries.
Making amends?
16 Aug, 2022

Making amends?

WHERE relations with the US are concerned, there has been a distinct shift in Imran Khan’s tone. While the PTI...
Hazardous celebration
16 Aug, 2022

Hazardous celebration

CAN celebratory actions that often result in death or lifelong injuries really be described as such? Be it Eid, New...