KARACHI: Workers’ remittance sent by overseas Pakistanis rose by 26 percent during the first nine months of this fiscal year.

According to the State Bank of Pakistan (SBP), cumulatively, Pakistan received home remittance inflows amounting to $21.5 billion during July-March FY21 compared to $17.1 billion during the same period of last fiscal year (FY20), depicting an increase of $4.4 billion. Proactive policy measures by the Government and SBP to encourage more inflows through formal channels, limited cross border travel in the face of the COVID-19, medical expenses and altruistic transfers to Pakistan amidst the pandemic, and orderly foreign exchange market conditions are continuing to contribute to this sustained rise in workers’ remittances, the SBP said.

Analysts said that the overall inflows are likely to cross $27 billion mark end of this fiscal year, if the current growth of the workers’ remittances will maintain in coming months. The higher inflows will also help to build the country’s foreign exchange reserves and reduce the pressure on external account, they added.  

According to the SBP statistics, workers’ remittances also extended their unprecedented streak of above $2 billion for the 10th consecutive month in March 2021. Remittances rose to $2.7 billion in March 2021, some 20 percent higher than $2.2 billion inflows in February 2021. Workers’ inflows in March also some 43 percent higher than March 2020, in which $1.9 billion home remittances were arrived. Pakistan is receiving over $2 billion inflows monthly since June 2020.

Remittance inflows during Jul-Mar FY21 were mainly sourced from Saudi Arabia (SA), United Arab Emirates (UAE), United Kingdom (UK) and the United States (US).

Overseas Pakistanis remitted some $5.7 billion from Saudi Arabia during the first nine months of this fiscal year as against $4.77 billion in corresponding period of last fiscal year, showing an increase of $930 million.

During the period under review, inflows of home remittances from UAE surged to $4.5 billion from $4.2 billion. Workers remittances from UK increased from $1.8 billion to $2.9 billion. Inflows of home remittances rose by $700 million to $1.9 billion during July-March FY21.