Remittances Continued to Stay Above $2 Billion for 14th Consecutive Month

Remittance inflows maintained their level of above the $2 billion marks for the 14th straight month in Pakistan, which depicted its sustainability and growth potential in the future. According to the State Bank of Pakistan (SBP), the remittances sent by overseas Pakistanis stood at $2.71 billion in July 2021. This is the second-highest ever level of remittances reported in the month of July. In April, the worker’s remittance surged to the all-time high of $2.8 billion. A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities, told Propakistani, ALSO READ Pakistan’s Transportation and Delivery App Receives $100,000 Funding The growth in the remittances was driven due to Eid-ul-Azha, which witnessed inflows of extra amounts from overseas Pakistanis who usually celebrated their sacrificial obligation in Pakistan with their family members/relatives and charitable organizations. In terms of growth, remittances increased by 0.7 percent over the previous month and showed a decline of 2.1 percent over the same month last year. Remittance inflows during July 2021 were mainly sourced from Saudi Arabia ($641 million), United Arab Emirates ($531 million), United Kingdom ($393 million), and the United States ($312 million). ALSO READ Govt Wants to Improve LNG Terminal Utilization to Prevent Gas Crisis Proactive policy measures by the Government and SBP – to incentivize the use of formal channels – curtailed cross-border travel in the face of COVID-19. Furthermore, altruistic transfers to Pakistan amid the pandemic and orderly foreign exchange market conditions have positively contributed towards the sustained improvement in remittance inflows since last year. The momentum in remittances is handy in times when imports are rising aggressively and the Rupee is slipping. The Current Account Deficit is in the new normal growth phase of 3 percent GDP growth, said analysts.