Remittances sent by overseas Pakistanis have maintained consistent inflows which surged to over $10 billion in the past four months from July to October 2021.
According to the State Bank of Pakistan, remittances have risen to $10.6 billion during the first four months of FY22 (July-October 2021), which is 11.9% higher than the same period last year.
Remittance inflows during the first four months of FY22 have mainly been sourced from Saudi Arabia ($ 2.7 billion), UAE ($ 2.0 billion), the UK ($ 1.5 billion), and the USA ($ 1.1 billion).
In October 2021, the inflows of workers’ remittances continued to record $2.5 billion, up 10.2 percent (y/y) and only marginally lower compared to last month (5.7 percent). In addition to remaining above $2 billion since June 2020, this is the eighth consecutive month when remittances have been close to or above $2.5 billion.
At $2.5bn in Oct21, remittances continue their strong streak, rising by 10% from Oct20 and only moderating marginally compared to Sep21. Cumulatively, they have risen to $10.6bn so far in FY22, up 12% over the same period last year. https://t.co/7XBd4uNES4 pic.twitter.com/V4YPd9JAuy— SBP (@StateBank_Pak) November 14, 2021
The central bank commented that proactive policy measures by the Government and SBP to incentivize the use of formal channels and altruistic transfers to Pakistan amid the pandemic have positively contributed to the sustained improvement in remittance inflows since last year.
The inflow of remittances continued to support the country’s current account situation, which remained challenging for the country mainly due to high imports bills.