FY22: Over $31 billion in record remittances received

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KARACHI: The country received the highest inflows ever, over $31 billion in the last fiscal year (FY22).

The State Bank of Pakistan (SBP) reported on Monday that home remittances recorded growth of around 6.1% in the last financial year. With this increase, workers’ remittances reached the highest level in history at $31.237 billion at the end of FY22, compared to $29.45 billion in FY21. an increase of $1.787 billion.

However, overall remittance growth is lower than in FY21, in which the country recorded 27% growth, compared to 6% in FY22. Analysts said the Growth in home remittances sent from Pakistan overseas in the last fiscal year is due to the joint efforts of the Pakistani government and the State Bank.

Month-on-month, remittances sent home increased by 18% in June 2022 compared to May 2022. Pakistan picked up remittances sent home amounting to $2.76 billion in June 2022, compared to $2.33 billion in May 2022, an increase of $429 million.

Year-over-year, workers’ remittances also increased by 2% or $47 million in June 2022, compared to $2.714 billion in June 2021.

Pakistan has been receiving over $2 billion in remittances since June 2020 and the trend has continued over the past fiscal year. Moreover, for the first time, monthly inflows crossed the $3 billion mark in April 2022 alone.

Remittances: $2.8 billion in record inflows received in March

Although home remittances from Saudi Arabia have been nearly stable over the past fiscal year, they have remained the largest contributor with a 25% share. Inflows from Saudi Arabia were $7.743 billion in FY22, up 0.2%, SBP revealed.

Workers’ remittances from the United States rose 18.5% to $3.081 billion in the last fiscal year from $2.599 billion in the previous fiscal year. Overseas Pakistanis from the UK sent $4.487 billion, up 9.7%, between July and June FY22. Remittances home from the UAE registered a 10% growth to $5.841 billion in FY22.

Inflows in April 2022 came mainly from Saudi Arabia and amounted to $686.2 million, from the United Arab Emirates at $557 million, from the United Kingdom at $381 million and from the United States of America at $246 million. Economists have said that more efforts are needed to increase the inflow of remittances to the country, as currently the country’s foreign exchange reserves are dwindling due to massive external payments.

Copyright Business Recorder, 2022

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