Pakistan receives record $ 29.4 b remittances in FY21

Pakistan has received a record $ 29.4 billion worth of remittances during the financial year 2020-21 as non-resident Pakistanis continued to send over $ 2 billion in foreign exchange for the 13th consecutive month in June, latest data shows, according to a report in the Khaleej Times. 

The paper reported State Bank of Pakistan, the central bank, as saying that workers’ remittances registered a substantial $ 6.24 billion, or 27% year-on-year growth, improving the country’s external sector position despite the challenging global economic conditions.

“This is the fastest growth in remittances since the financial year 2002-03,” the central bank said.

Pakistan received $ 23 billion in remittances during the financial year 2019-20. The Government has set $ 31 billion in remittances for the present fiscal year of 2021-22. 

The report said overseas Pakistanis residing in the UAE and Saudi Arabia continued to play the lead role as they remitted a record $ 13.77 billion during July-June 2021 compared to $ 12.22 billion in the corresponding fiscal period, reflecting a strong 12.68% growth despite difficult times in the wake of the COVID-19 pandemic.

Non-resident Pakistanis in Saudi Arabia remitted $ 7.66 billion in 2020-21 as against $ 6.61 billion in 2019-20, showing an increase of 16%. Overseas Pakistanis residing in the UAE sent $ 6.11 billion during the fiscal year 2020-21 compared to $ 5.61 billion in 2019-20, reflecting an increase of 8.9%.

“Overall, record-high inflows of workers’ remittances during 2020-21 have been driven by proactive policy measures by the Government and SBP to incentivise the use of formal channels, curtailed cross-border travel in the face of COVID-19 infections, altruistic transfers to Pakistan amid the pandemic, and orderly foreign exchange market conditions,” the central bank said.