The remittances sent by overseas Pakistanis have surged to an all-time high of Rs. 31.2 billion, up by 6 percent in the outgoing financial year 2021-22, as compared to the $29.4 billion reported in the previous financial year.
The remittances from Saudi Arabia stood at the highest level of $7.74 billion, with a slight increase from last year. Those from the UAE were recorded at $5.8 billion in FY22 as compared to $6.1 billion reported in FY21. The remittances from the Gulf countries (Bahrain, Qatar, Kuwait, and Oman) were $3.6 billion in FY22 as compared to the $3.3 billion reported in FY21.
The remittances from the EU countries had handsome inflows of $3.3 billion in FY22 as compared to the $2.7 billion reported in FY21.
As anticipated, remittances in FY22 rose to a record $31.2 bn, up 6% compared to FY21. In June, they rose to $2.8 bn, increasing by 18% compared to May 22 and 2% compared to Jun 21. See: https://t.co/7XBd4uNES4
Visit #EasyData to view interactive chart https://t.co/bOIQjODIsE pic.twitter.com/Hrj8fiXNjy— SBP (@StateBank_Pak) July 18, 2022
According to the State Bank of Pakistan (SBP), workers’ remittances rose to a record-high in FY22.
As anticipated, the remittances in FY22 rose to a record $31.2 billion, up six percent as compared to FY21. They rose to $2.8 billion this June, increasing by 18 percent as compared to May 22, and two percent as compared to June 21.
The remittances rose to $2.76 billion in June this year, increasing by 18.4 percent on a month-on-month (MoM) basis, and 1.7 percent on a year-on-year (YoY) basis. They were mainly sourced from Saudi Arabia ($666 million), the UAE ($495 million), the UK ($455 million), and the USA ($285 million). Cumulatively, the remittances rose to a record $31.2 billion in FY22, increasing by 6.1 percent compared to FY21.
The increasing inflows were due to various measures taken by the government and the banking regulator, including introducing the Roshan Digital Account and incentives to overseas Pakistanis (Sohni Dahrti Program), banks, and exchange companies for higher collections of remittances, and facilitating expatriate Pakistanis living in different countries.
Moreover, the number of overseas Pakistanis with work opportunities in different countries also grew after the easing of COVID-19-related restrictions.
The inflows of remittances played a very important role in offsetting the impact of higher imports on the balance of payment. This is one of the solid components of macroeconomic indicators which consistently bodes positively for the country’s economy.
