Remittances hit file excessive at $20bn, keep above $2bn for 21st month in a row

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A stack of $100 notes. — Reuters/File
A stack of $100 notes. — Reuters/File
  • Remittances rise 7.6% to $20.14bn throughout July-February.
  • SBP notes that remittances have remained above $2bn since June 2020.
  • Inflows rise 2% month-on-month to $2.19 billion in February 2022.

KARACHI: Pakistan has acquired record-high employees’ remittances of $20.1 billion from the expatriates within the first eight months (July-February) of the present fiscal yr 2021-22, and stayed above $2 billion for the 21st consecutive month.

Remittances rose 7.6% to $20.14 billion throughout July-February of the fiscal yr 2021-22 in comparison with $18.71 billion in the identical interval of 2020-21, the State Financial institution of Pakistan (SBP) reported on Thursday.

The inflows rose 2% month-on-month to $2.19 billion in February 2022. They’d amounted to $2.14 billion within the earlier month of January 2021. They slowed down 2.7% in February in comparison with $2.25 billion in the identical month of final yr.

With $2.2 billion of inflows throughout February 2022, employees’ remittances continued their sturdy efficiency and have remained above $2 billion since June 2020, the central financial institution stated in a press release issued on this regard.

“When it comes to development, throughout February 2022, remittances elevated by 2% on a month-on-month foundation regardless of fewer working days in comparison with January,” the assertion learn.

Remittances began enhancing after international journey got here to a standstill throughout the peak of COVID-19. That improvement additionally disrupted the community of unlawful Hawala/ Hundi operators, who used to supply a greater value to the remittance senders in comparison with the one supplied by the official channels like banks.

Accordingly, the remittance inflows began enhancing from June 2020 and got here in at a historic excessive of $2.78 billion in September 2021.

Alpha Beta Core CEO Khurram Schehzad in his evaluation stated that with remittances clocking in at $2.2 billion, “looks like present account deficit for February 2022 can be barely under $1 billion.”

The central financial institution stated that remittances inflows throughout February 2022 had been primarily sourced from Saudi Arabia ($558 million), the United Arab Emirates ($387 million), the UK ($319 million) and the US of America ($210 million).

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