Remittance Inflows Stay Above $2 Billion for Fifth Consecutive Month - Android

Pakistan received record remittances of above $2 billion from overseas workers for the fifth consecutive month in October 2020. According… Read More

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Pakistan received record remittances of above $2 billion from overseas workers for the fifth consecutive month in October 2020.

According to the State Bank of Pakistan (SBP), remittances sent by Pakistani expatriates amounted to $2.3 billion during October 2020, increasing by 14.1 percent compared to October 2019.

A large part of the year-on-year increase in October 2020 was thanks to Saudi Arabia with a share of 30 percent in the overall inflows. The remittances from the United States also showed a 16 percent increase whereas the inflows from the United Kingdom grew by 14.6 percent.

A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities told ProPakistani,

The growth is above expectations when COVID struck. It would remain positive for the next few months due to documentation, formal channels, and some savings transfer.

Improvements in Pakistan’s FX market structure, efforts under the Pakistan Remittances Initiative (PRI) to formalize the flows, and limited cross-border traveling contributed to the growth in remittances, according to the SBP.

The government incentivized schemes such as Roshan Digital Accounts, and enhanced use of banking channels by overseas Pakistanis have played a major role in the sustained inflow of remittances.

During the period of July-October FY21, workers’ remittances increased to $9.4 billion, recording a double-digit growth of 26.5 percent compared to the same period last year.

The handsome inflows of the remittances continue to play a pivotal role in maintaining a surplus in the current account. On the other hand, the Rupee continued its unhindered climb against the dollar in recent months.

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