Remittances increase 9% to $21.841 billion – Details
- State Bank of Pakistan reveals the increase in the inflows increased 9% to $21.841.
- The highest inflows came from Saudi Arabia; $5billion increased by 2.97% as compared to the previous year.
- Malaysia has arisen as another important destination for inflows in Pakistan.
The inward remittances in fiscal year19 clocked in at $21.841 billion, increased 9% from fiscal year18.
The data from SBP showed that inflows from countries other than those in the Middle East were considerably higher than the previous year.
Inflows from Gulf Nations:
The highest inflows came from Saudi Arabia at $5billion up 2.97% from the same period last year showing improvement in bilateral relations between Riyadh and Islamabad.
Inflows from the US:
Inflows from the United Statesnoticeablyincreased by 20.15% to $3.409billion compared to FY19. The rise in remittances from the US comes despite the worsening relationship between Islamabad and Washington.
Inflows from the UK:
Inflows from the United Kingdom have also increased by 17.9%to $3.44billion.
Inflows from UAE:
Inflows from the United Arab Emirates (UAE) increased by 5.98%this year as compared to just 0.7% in the fiscal year18, total inflows clocked in at $4.619billion.
However, inflows from the GCC countries showed negative growth after total inflows clocked in at $2.119billion showing a negative growth of 1.8% compared to 7% previous year.
Another important destination for inflows:
Malaysia has arisen as another important destination for inflows in Pakistan and its inflows increased by 35% to $1.551billion this year.
On a month-on-month basis, inflows during June dropped to $1.65billion compared to $2.315billion in May falling by 28%.
Due to the sharp fall in the rupee’s value against the dollar, Pakistanis living abroad are sending more inflows. The measures are taken by the government of Pakistan are also the reason for an increase in the inflows. The inflows are the main cause of foreign exchange as it will help in meeting foreign expenditures.