Prime Minister Imran Khan announced via Twitter on Friday that Pakistan had received $2.4 billion in remittances in December 2020.
The tweet read: “I want to thank our overseas Pakistanis for yet another record-breaking month of remittances in Dec: $2.4 billion. MashaAllah, 1st time in Pakistan remittances have been above $2 billion for 6 consecutive months”.
I want to thank our overseas Pakistanis for yet another record-breaking month of remittances in Dec: $2.4 bn. MashaAllah, 1st time in Pakistan remittances have been above $2 bn for 6 consecutive months. Total for 6 months of this fiscal year $14.2 bn – a 24.9% growth over last yr
— Imran Khan (@ImranKhanPTI) January 8, 2021
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The total remittances received for six months of this fiscal year amount to $14.2 billion, which shows 24.9 percent growth as compared to the previous fiscal year.
This is the highest half-yearly growth since FY07.
Remittance inflows have been well-diversified. Most of the inflows during H1-FY21 were sourced from Saudi Arabia ($4.0 billion), United Arab Emirates ($3.0 billion), United Kingdom ($1.9 billion) and United States ($1.2 billion).
This strong growth in workers’ remittances is attributable to the increased use of formal channels on the back of sustained efforts by the government and SBP to encourage inflows through official channels as well as limited cross-border travel due to the second wave of the COVID-19 pandemic, together with favorable foreign exchange market dynamics.
The Managing Director at Khadim Ali Shah Bukhari Securities, A.A.H Soomro spoke to ProPakistani and said, “Extended COVID-19 lockdowns coupled with increased formal channels are keeping remittances super strong. The economy is getting solid, and remittances are paving way for higher imports”.
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He said that the Roshan digital accounts are likely to keep the momentum upwards, adding, “Expect foreign investment to increase in debt market also”.
CEO of the financial advisory Alpha Beta Core, Khurram Schezad told ProPakistani,
Remittances have also increased because travel (informal channel of remittances) has decreased due to Covid-19, and that has made remittances flow through formal channels. Furthermore, those who are moving back permanently owing to Covid-19 are also transferring their savings and settlements back to Pakistan.
