Remittance inflow slightly increased by 5%

Picture source - Reuters

The influx of workers’ remittances sent home by overseas Pakistanis increased by 5% to $2 billion in February before the holy month of Ramadan and the festival of Eid.

From a low of $1.92 billion in January 2023, which was a 30-month low, the inflows slightly recovered in February.

However, inflows remained relatively low because some non-resident Pakistanis continued to send money to their relatives through unauthorized routes. After all, the black currency market offered a better rupee-to-dollar exchange rate.

According to a report released on Friday by the State Bank of Pakistan (SBP), worker remittance inflows totaled $2 billion in February 2023.

Compared to January, they have grown by 4.9% in February. The central bank reported that inflows were down significantly this month compared to the same period last year, by 9.5%.

Remittances declined by 10.8% over the first eight months (July-Feb) of the current fiscal year 2023, totaling $18 billion when compared to the same time the previous year.

According to SBP, the United Arab Emirates ($324.0 million), United Kingdom ($317.0 million), Saudi Arabia ($454.6 million), and the United States ($219.4 million) were the largest sources of remittances in February 2023.

Overseas Pakistanis typically send more money before the fasting month of Ramadan to help their family members deal with greater inflation and to celebrate the Eid festival.