Remittances are one of the major sources of income of foreign exchange for Pakistan. This Tuesday, a report regarding statistics of the workers’ remittances was released.
According to the report, remittances have decreased by 19.82% compared to the remittances sent in the same month last year. They amounted to $1.609 billion in September 2016 but this year, the number has been reduced to $1.29 billion.
The inflow in the month of September is 33.79% lesser than the inflow in August. From the months of July till September of this year, the remittances stood at $4.79 billion. This was an increase from $4.74 billion in remittances in the same time period last year.
Country-wise details of remittances of September 2017 compared to those of September 2016
|Country||September 2017||September 2016|
|Saudia Arabia||$ 308.05 million||$437.87 million|
|UAE||$ 302.77 million||$361.9 million|
|USA||$ 171.9 million||$211.14 million|
|UK||$ 194.76 million||$210.22 million|
|GCC countries*||$ 141.02 million||$182.18 million|
|EU||$ 45.07 million||$43.60 million|
*GCC countries(including Bahrain, Kuwait, Qatar, and Oman)
Residents of Norway, Switzerland, Australia, Canada, Japan and other countries contributed $130.31 million this year, whereas last year in September, the remittances from these countries were $165.45 million.
The remittances in the country have generally declined in the past year. There can be many reasons behind it but it can be very dangerous for the economy of Pakistan as the remittances play a pivotal role in the earnings of foreign exchange.
If the role of remittances in country weakens, there will also be an increase in the pressure on the government of Pakistan to keep the balance of payments.