Remittances Drop by Over 9% to $2.2 Billion in October

The inflows of remittances continued the downward trend in the current financial year showing a drop of over 9 percent in October 2022 as compared to September 2022 and a staggering decline of 15.7 percent as compared to the same month of the last fiscal year.

According to the State Bank of Pakistan (SBP), workers’ remittances recorded an inflow of $2.2 billion in October 2022.

The economic slowdown coupled with the fiscal measures in the host countries is one of the reasons for this consistent downward trend in inflows by overseas Pakistanis. The higher dollar rate offered in grey channels has also caused a decrease in inflows through the banking channels.

Independent economic analyst A H H Soomro told ProPakistani,

The decline is expected as the spread between the open market and interbank increased to incentivize hawala and hundi.

Remittances inflows during October 2022 were mainly sourced from Saudi Arabia ($570.5 million), the United Arab Emirates ($427 million), the United Kingdom ($278.8 million), and the United States ($253.1 million).

The cumulative inflows of $9.9 billion during Jul-Oct FY23, portray a decrease of 8.6 percent as compared to the same period of the last fiscal year.