The inflows of remittances suffered a fresh blow as they declined by 5 percent in January 2022 compared to the corresponding period last year, partly reflecting an easing of travel restrictions. Compared to December 2021, the remittances fell by 14.9 percent on a month-on-month basis due to seasonality.
Official numbers by the State Bank of Pakistan (SBP) revealed that inflows of remittances stood at $2.14 billion in January 2022 and remained above $2 billion for the 20th consecutive month.
At $2.14bn in Jan22, remittances moderated compared to previous month due to seasonality but remained above $2bn threshold for 20th straight month. So far this FY, remittances have risen to a record high of $18bn, up 9.1% over the same period last year. https://t.co/7XBd4uNES4 pic.twitter.com/pc51WUVf49
— SBP (@StateBank_Pak) February 11, 2022
Economic analyst, A. H. H. Soomro, told ProPakistani,
Resumption of travel and high base is yielding into a reality check. Post-Covid, the outflow of labour isn’t going to be as high as pre-Covid days to Arab countries. The only way to preserve forex reserves is through import substitution and exports growth. Policymakers have to double up and live within means. The PTI govt has had a ball with remittances growth. From now onwards, export growth is badly needed.
Between July 2021 and January 2022, workers’ remittances have surged to $18 billion, 9.1 percent higher than the same period last year. Remittances sent by overseas workers maintained their stability with over $2 billion inflows recorded in January.
Remittances inflows are likely to set a new record in the current financial year if the growth persists in the months to come. It is noteworthy that the use of banking channels by overseas Pakistanis helped increase the inflows of remittances in the country.
Inflows of remittances during January 2022 were mainly sourced from Saudi Arabia ($540 million), the United Arab Emirates ($374 million), the United Kingdom ($320 million), and the United States of America ($208 million).
