Remittances Likely to Cross $30 Billion Despite 25.4% Dip in May

Remittances inflows in the outgoing month of May decreased by 25.4 percent on a month-on-month (MoM) basis and 6.9 percent on a year-on-year (YoY) basis, largely reflecting the usual seasonal post-Eid decline and associated long holiday

According to the State Bank of Pakistan (SBP), the remittance inflows received from overseas Pakistanis reached $28.2 billion during the eleventh month of the financial year 2021-22.

With a month left ahead of Eid-ul-Azha, the inflows of remittances are likely to cross a historical mark of $30 billion for the first time by the end of the current financial year. It bears mentioning that in May 2022, remittances inflows stood at $2.3 billion.

The workers’ remittances have continued to remain above the $2 billion mark since June 2020.  In terms of growth, remittances decreased by 25.4 percent on a month-on-month (MoM) basis and 6.9 percent on a year-on-year (YoY) basis, largely reflecting the usual seasonal post-Eid decline and associated long holiday. Cumulatively, at $ 28.4 billion, remittances have grown by 6.3 percent YoY during the first 11 months of FY22.

The inflows under Roshan Digital Account also witnessed a lukewarm response in May with inflows standing at $189 million—a relatively lower number than the previous months due to seasonal impact.

Other miscellaneous data suggests that remittances in May 2022 were mainly sourced from Saudi Arabia ($542 million), the United Arab Emirates ($435 million), the United Kingdom ($354 million), and the United States of America ($233 million).