Remittances soar to all-time high in FY21

By Salman Siddiqui
Published in DAWN on July 13, 2021

KARACHI: The amount sent home by overseas Pakistanis in fiscal year 2020-21 registered the fastest growth in past 18 years and rose to an all-time high of $29.4 billion while playing a leading role in boosting country’s foreign currency reserves and improving its capacity to make international payments for imports and foreign debt repayments.

“On a cumulative basis, remittances rose to a historic high of $29.4 billion. This helped improve the country’s external sector position despite the challenging global economic conditions in the past year,” the State Bank of Pakistan reported on Tuesday.

To recall, the country’s foreign exchange reserves climbed to over four-year high at $17.23 billion in the week ended July 2, 2021, the central bank said in its latest weekly update on Thursday.

Remittances registered a substantial growth of 27% in FY21 over the previous year which was the fastest rate of expansion since FY03, it said.

The inflows surged 9% to $2.7 billion in June 2021 compared to the same month last year while on a month-of-month basis, they recorded an increase of 8% compared to May 2021.

“Seasonal pre-Eid related inflows helped give a boost to remittances during June,” the State Bank of Pakistan (SBP) said adding that remittances maintained the unprecedented streak of remaining over $2 billion a month for a record 13th successive month in June.

Remittance inflows during FY21 were mainly sourced from Saudi Arabia (at $7.7 billion), United Arab Emirates ($6.1 billion), United Kingdom ($4.1 billion) and the United States ($2.7 billion).

“Overall, record high inflow of workers’ remittances during FY21 was driven by proactive policy measures by the government and SBP to incentivise the use of formal channels, curtailment of cross-border travel in the face of Covid-19 infections and altruistic transfers to Pakistan amid the pandemic,” the central bank said.

Your Comment:

Related Posts

29

Mar
CIMRAD, Print Media

Scottish Muslim leader’s rise underlines ‘new norm’ in UK

Published in Pakistan Today on March 28, 2023 LONDON: The jury is out on whether Humza Yousaf can deliver independence for Scotland. But history’s verdict will be clear on the 37-year-old’s breakthrough as the first Muslim Pakistan-origin leader of a western European democracy. The newly-elected head of the Scottish National Party (SNP) joins the growing ranks of […]

28

Mar
Print Media

Income inequality and poverty in Pakistan

By Shahid Javed Burki Published in The Express Tribune on March 27, 2023 In the article today, I will write about how I read Pakistan’s more than 75-year history covering economic, social and political developments. I will deploy some theoretical advances to speculate the directions in which the country seems to be headed in the near term.[…]