Pakistan to exceed $31bn remittances target

Pakistan is on track to achieve a record $32 billion in remittance inflows in the current fiscal 2021-22 as its over nine million overseas workers remitted a record $8.04 billion during the first quarter ended on September 30.

The latest data released by the State Bank of Pakistan (SBP)_ showed that non-resident Pakistanis sent 12.5 per cent more money back home during the July-September quarter compared to the same period last year. It is the highest ever quarterly remittance received by the country in its 75 years of history.

"If the first-quarter trend persists_ Pakistan remittances could hit the figure of $32 billion during the current financial year. This contributes significantly to countering external pressure on balance of payment_" according to the Trust Securities and Brokerage Limited.

Overseas Pakistanis residing in the UAE and Saudi Arabia contributed a major share in total remittances as they sent $1.55 billion and $2.03 billion_ respectively. The remittance outflows from the UAE to Pakistan climbed nine per cent year-on-year basis_ while Saudi Arabia registered a slight decline of three per cent during the quarter.

Remittances from the US and UK soared 32 per cent ($833 million) and 13 per cent ($1.12 billion)_ respectively. First-quarter inflows from the European Union surged 48 per cent to $889 million from $601 million in the same quarter last year.

"Proactive policy measures by the government and SBP to incentivise the use of formal channels_ curtailed crossborder travel in the face of Covid19_ altruistic transfers to Pakistan amid the pandemic_ and orderly foreign exchange market conditions have positively contributed towards the sustained improvement in remittance inflows since last year_" the SBP said.