Pakistanis Nonetheless Sent Back Money
Despite a rise in inflation that has pushed the cost of living up globally in the post-Covid era, overseas Pakistanis nonetheless sent back more money in August, totaling $2.7 billion.
According to data released by the State Bank of Pakistan (SBP) on Tuesday, the nation received $2.724 billion in August, an increase of nearly 8% over July. The amount was only somewhat more than $2.682 billion in August 2021.
Besides, in July-August, remittances by overseas workers declined 3.2pc to $5.247bn from $5.418bn a year ago.
Europe’s Dramatically Rising Cost of Living
Financial industry analysts had previously worried that remittances may fall as a result of the Middle East and Europe’s dramatically rising cost of living, but robust inflows in August dispelled all of their fears.
Over $31 billion in record-breaking remittances, up 6.1 percent from the year before, were sent to Pakistan in FY22.
However, in the first month of the current fiscal year, foreign direct investment (FDI) decreased by 43.3 percent. Compared to $103.8 million in July 2020, just $58.9 million in FDI might be received by the nation.
Economy Suffering a Severe Lack Of Inflows of Dollars
A positive indicator for the economy suffering a severe lack of inflows of dollars was the current account deficit’s (CAD) dramatic month over month reduction of 45 percent to $1.2 billion in July.
Read More | Tarin says Pakistan’s economy going strong
Due to flash floods that have wreaked havoc on agriculture nationwide, notably in Sindh and Balochistan, the country requires substantially higher inflows of remittances in the current fiscal year. This will also result in a surge in food imports as main crops were severely damaged.
The nation’s exports and remittances were both record-breaking in FY22, although the CAD remained extremely high.
Remittances Sent by Pakistanis Living Abroad
The first two months of 2022–23 saw a decrease in remittances sent by Pakistanis living abroad to nearly all significant destinations.
The greatest remittances were made from Saudi Arabia, which saw a 7.5 percent fall in its July-August output to $1.272 billion.
Inflows From UAE Decreased
Inflows from the UAE decreased 8.2 percent to $987.6 million in July-August from $1.075 billion in the same period last year.
Pakistanis living abroad sent $781 million and 584.7 million, respectively, up 3.2 percent and 7.1 percent over the same period previous year.
$581 million from the GCC and $569 million from the EU nations were additional significant inflows. However, compared to a 50 percent increase during the same period last year, European inflows were down by 4.5 percent.