Remittances jump 31pc

Remittances during the month of September jumped by 31 percent to $2.3 billion compared to the same month last year, data released by the State Bank of Pakistan (SBP) showed on Monday.

“Trend of strong workers’ remittances continues in September. Workers’ remittances remained above $2 billion for the fourth consecutive month in September.  They increased to $2.3 billion, 31.2 percent higher than the same month last year and 9 percent higher than in August,” said the SBP.

On a cumulative basis, remittances rose to a record $7.1 billion in 1QFY21, 31.1pc higher than the same period last year, it said.

The level of remittances in September was slightly higher than SBP’s projections of $2bn. Efforts under the Pakistan Remittances Initiative (PRI) and the gradual re-opening of major host destinations such as the Middle East, Europe, and the United States contributed to the sustained increase in workers’ remittances.

On a year-on-year basis, during September 2020 remittances from the United Kingdom increased by 64pc YoY, followed by the United States of America, up 54cp YoY, Saudi Arabia, up 29pc YoY, European Union 25cp YoY), the Gulf Cooperation Council 14pc YoY) and the United Arab Emirates 12oc YoY.

On a contribution basis: Saudi Arabia contributed 29pc, followed by UAE 21pc, UK 13pc, GCC 11pc, USA 8pc and the rest of the world contributed 18pc.

Analysts believe that the remittances in FY21 would largely remain unchanged at $23bn owing to governments’ continued efforts to incentivise remitters coupled with re-opening of major economies.

Global agencies had warned that the remittances to the South Asian countries would likely be reduced due to the Covid-19 mainly on account of the job losses of migrant workers.

However, the trend of inflows in the last few months has shown a different picture as remittances have hit record high in Pakistan.