Incessant increase in Remittances by Pakistanis recorded in May 2019
- Remittances have been increased up to 30.17% over the month of May.
- Inflows were led by Saudi Arabia from where Pakistani expatriates sent $493.73 million.
- The US and UK are the major contributors showing a growth of 20% in remittances.
Tempted by a sharp fall in the rupee’s value against the dollar, Pakistanis living abroad sent home more remittances and crossed the $2billion mark.
The measures are taken by the government of Pakistan to tackle the black economy also reflected in May’s data.
For the government of Pakistan, the inflows are the main cause of foreign exchange because it will assist in meeting foreign expenditures mainly on two important fronts; imports and foreign debt repayment.
Details released by the State Bank of Pakistan (SBP):
On a yearly basis, the remittances surged to $20.2 billion in the first 11 months (July-May) of the current fiscal year. This showed an increase of 10.42% over $18.3 billion in the same period of the preceding year.
In May 2018, inflows by Saudi Arabia were $432.05 million, but in May 2019, Saudi Arabia led the inflows from where Pakistani expatriates sent $493.73 million.
Inflows from UAE:
Pakistanis living in the UAE sent $476.57 million in May 2019, compared with $373.85 million in May 2018.
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From the US and UK:
Inflows of $346.81 million have been sent from the US as compared to $290.26 million last year. From the UK, the inflows stood at $387.09 million compared with $269.11 million in 2018.
From EU countries:
Inflows from the EU countries amounted $70.61 million compared with $60.34 million last year.
Inflows from Gulf Cooperation Council member countries:
Remittances from the Gulf Cooperation Council member countries (Bahrain, Kuwait, Qatar, and Oman) increased to $237.76 million in May 2019 compared with $178.96 million last year.
From other countries:
During May 2019, remittances from Malaysia, Norway, Switzerland, Australia, Canada, Japan, and other countries stood at $303.17 million as against $199.51 million in May 2018.
The major increase in remittances has been observed from the west. The US and UK are the major contributors showing a growth of over 20% in remittances to Pakistan.
For the first time, Pakistan has received the highest cash inflow. According to details released by State Bank of Pakistan (SBP), overseas Pakistanis remitted the US $3.9 billion in the first two months of the fiscal year- 2018-19.
The increase in remittances is because of Imran Khan’s appeal to overseas Pakistanis to donate for dams. On Sep 7, Prime Minister Imran Khan had urged the overseas Pakistanis to donate for construction of dams in Pakistan to stop the looming water crisis.