Remittances to Pakistan Grow Despite Global Slowdown - Android

Despite a slowdown in the global economy owing to coronavirus, remittances to Pakistan have grown by 6% during the first… Read More

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Despite a slowdown in the global economy owing to coronavirus, remittances to Pakistan have grown by 6% during the first nine months of this fiscal year (Jul-Mar FY20).

There were fears that inflows from overseas Pakistanis will drop due to layoffs and salary cuts in the wake of the coronavirus.

However, overseas Pakistani workers remitted $16.991 billion in remittances, showing a growth of 6% or $960.7 million during 9MFY20, as compared to $16.03 billion received in the same period last year, according to the State Bank of Pakistan.

According to the data, Saudi Arabia is still the largest contributor with a major share in overall remittances. $3.925 billion inflows were received from Saudi Arabia in the first nine months of this fiscal year 9MFY20 as compared to $3.747 billion in the previous year.

The United Arab Emirates came in second, accounting for inflows worth $3.552 billion in 9MFY20, as compared to $3.412 billion in the previous year.

Remittance inflows surprisingly saw growth from the countries having prolonged lockdown namely KSA, UAE, and the USA as many overseas workers have become jobless or mostly don’t have any earning activities in the prevailing situation.

Analysts believe that remittance growth was witnessed from overseas Pakistanis well settled in different countries who have sent extra money to their relatives in Pakistan on the account of financial assistance, charity, or Zakat.

In Pakistan, remittance inflows show a significant increase a month before Eid ul Fitr, which will be next month. Hence this factor also partially contributed to the growth of remittance in the outgoing month.

The remittance during March 2020 increased by $160.9 million or 9.3 percent to $1.894 billion as compared with $1.733 billion received during the corresponding month of FY19.

Country-wise details for the month of March 2020 show the inflows from the major countries and regions.

• Saudi Arabia: $452.3 million
• UAE: $420.4 million
• USA: $352.4 million
• UK: $248.5 million

Remittances increased 7.2 percent, 8.6 percent and 5.5 percent for Saudi Arabia, UAE, and USA, respectively and decreased two percent from the UK, compared to February.

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