The remittance received from Overseas Pakistanis in April stood at $2.8 billion, which is an all-time high figure for a single month.
The remittances figures in April are higher than 56 percent compared with the same month of last year.
The growth in remittance inflows was reported mainly because of the occasion of Eid ul Fitr, which traditionally attracted additional money from various countries. Expatriate Pakistanis send extra money to their relatives to do Eid-related spending and mandatory charity of Zakat and Fitrana to deserving people in the home country.
On a cumulative basis, remittances have also surpassed previous records. At $24.2 billion in July-April FY21, remittances grew by 29 percent over the same period last year and have already crossed the FY20 level by more than $1 billion.
A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities, told Propakistani,
The remittances have been a true savior for Pakistan’s growth story this year. Otherwise, low-interest rates were not going to last, and pressure on currency would be seen in the light of the rising trade deficit amid the global commodity super-cycle. Expect this to be equally strong for May as Eid overlapped and even for the next two months until Eid Al Azha. Low-travel and formal channels are surely helping as an invisible hand. Government is effectively capitalizing overseas Pakistani’s through newer schemes, special Roshan Digital Accounts. Very safe to say that remittances have increased the government’s bargaining power with the IMF and set the stage for growth next two years as SBP reserves pile up.
Remittance inflows during July-April FY21 were mainly sourced from Saudi Arabia ($6.4 billion), United Arab Emirates ($5.1 billion), United Kingdom ($3.3 billion), and the United States ($2.2 billion).
Workers' remittances continue to surge, rising to an all-time high of $2.8bn in Apr21, 56% higher than a year ago. At $24.2bn during Jul-Apr FY21, up 29% from last year, these have also surpassed the full FY20 level by over $1bn, creating a new record. See https://t.co/7XBd4uNES4 pic.twitter.com/OIqQwlR88q
— SBP (@StateBank_Pak) May 18, 2021
Proactive policy measures by the Government and SBP to encourage more inflows through formal channels, curtailed cross-border travel in the face of COVID-19, altruistic transfers to Pakistan amid the pandemic, orderly foreign exchange market conditions, and more recently.
Roshan Digital Account received an overwhelming response which provided ease to overseas Pakistanis to transfer their remittance to homeland more conveniently.
Prime Minister Imran Khan also highlighted the development. He said, “I have always believed Overseas Pakistanis to be our greatest asset. In April, your remittances rose to an all-time high of $2.8bn.”
I have always believed Overseas Pakistanis to be our greatest asset. In April, your remittances rose to an all-time high of $2.8bn. Remitting $24.2bn in first 10 mths of FY21, you have broken the record level achieved in entire FY20. Thank you for your faith in Naya Pakistan.
— Imran Khan (@ImranKhanPTI) May 18, 2021
