Pakistan received record remittances of over $31 billion
The State Bank of Pakistan (SBP) revealed on Monday that Pakistan received record remittances of over $31 billion in the fiscal year 2021–2022 (FY22) — a rise of 6.1% over FY21.
Remittances in June FY22 were 18.4 percent higher than in May FY22
Remittances in June FY22 were 18.4 percent higher than in May FY22, according to the central bank, indicating an upward trend. Remittances in June, however, were just 2% higher than they were in the corresponding month of FY21.
Pakistanis living abroad sent $2.761 billion in June FY22 as opposed to Rs2.332 billion in May
Pakistanis living abroad sent $2.761 billion in June FY22 as opposed to Rs2.332 billion in May, an increase of $429 million. In spite of significant issues with the external balance brought on by escalating trade and current account deficits, Pakistanis living abroad retained their confidence as a sign of support for their nation.
Remittances have been coming into the nation at a higher rate than they have been leaving. However, FY22 revealed that despite minor variances in the amount, exports and remittances were practically at the same level. Total remittances to the nation were $31.761 billion.
The country’s exports rose by 27%
The country’s exports rose by 27% and stayed at $31.85 billion in FY22, up from $25.16 billion in the same period of 2020–21, according to preliminary data. On a month-over-month (MoM) basis, the nation’s exports increased by 10% from $2.63 billion in May to $2.89 billion in June.
However, the trade deficit increased by 57 percent to a new high of $48.67 billion. In FY21, the trade deficit was $30.96 billion.
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Remittance inflows are more crucial to close the trade imbalance because it cannot be closed despite grand assertions that certain imports will be prohibited.
Saudi Arabia contributed the largest sum, $7.743 billion
More information reveals that Saudi Arabia contributed the largest sum, $7.743 billion, with a 0.2 percent gain from the previous year. In FY21, the same nation sent remittances of $7.726 billion.
The UAE’s contributions decreased by 5.2 percent to $5.842 billion. Remittances from the UK increased by 9.7% in FY22, from $4.091 billion to $4.487 billion.
United States saw the second-highest gain in remittances
The United States saw the second-highest gain in remittances, increasing by 18.5 percent to $3.082 billion from $2.599 billion in FY21.
The amount coming in from GCC nations rose by 8.7% to $3.622 billion. However, the EU countries’ inflows, which totaled $3.361 billion in FY22, showed the greatest growth.