According to the State Bank of Pakistan (SBP), the remittance inflows in the outgoing month of February 2022 were recorded at $2.2 billion, which showed 2 percent growth on a month-to-month basis despite fewer working days compared to January and fell by 2.7 percent in a yearly basis.
Economic Analyst, A. A. H. Soomro, told ProPakistani,
Remittances growth slows down. Gone are the golden days for the government when remittances growth financed the imports. Even at these rates, it’s single-handedly keeping Pakistan pay for imports. Sustainable, value-adding, technology-led & less-import-linked export growth is needed.
Remittance inflows during February 2022 were mainly sourced from Saudi Arabia ($558 million), the United Arab Emirates ($387 million), the United Kingdom ($319 million), and the United States of America ($210 million).
The inflows of remittances from overseas Pakistanis surged to $20.1 billion during the eight months of the current financial year 2021-22, showing a growth of 7.6 percent compared to the same period last year.
The workers’ remittances continued their strong performance and have remained above $2 billion since June 2020. It is pertinent to mention that the global restrictions amid COVID-19 improved the inflows of remittances to Pakistan from various countries as expatriate Pakistanis were bound to use the banking channels instead of the illegal way of Hundi/Hawala.
During the period, the incumbent government and banking regulator (SBP) took various measures to improve the inflows level of remittances to a permanent level.
Hence, as an incentive to overseas Pakistanis, various facilitations under Roshan Digital Account (RDA), incentives for banks, exchange companies, and money transfer wires have stabilized the growth momentum of remittances inflows.
Remittances rose to $2.2bn in Feb, up 2% compared to Jan despite fewer working days. Cumulatively, remittances have risen to $20bn in first 8 months of FY22, up by 8 % over the same period last year. https://t.co/7XBd4uNES4 pic.twitter.com/atv21KmZzY
— SBP (@StateBank_Pak) March 10, 2022
The inflows of remittances are likely to cross the mark of $30 billion again in the current financial year. The role of remittances is very pivotal to establish various macroeconomic indicators, including current account and Rupee stability against Dollar.
