Remittances hit all time monthly high of $2.8bn in April

KARACHI: The State Bank of Pakistan (SBP) on Tuesday said that the inflow of workers’ remittances rose to an all-time monthly high of $2.8 billion in April 2021, which is 56 percent higher than the same month last year.
On a cumulative basis, remittances have also surpassed previous records. At $24.2 billion in July-April FY21, remittances grew by 29 percent over the same period of the last year and have already crossed the full FY20 level by more than $1 billion.
Remittance inflows during July-April FY21 were mainly sourced from Saudi Arabia ($6.4 billion), United Arab Emirates ($5.1 billion), United Kingdom ($3.3 billion) and the United States ($2.2 billion).
Proactive policy measures by the government and SBP to encourage more inflows through formal channels, curtailed cross border travel in the face of COVID-19, altruistic transfers to Pakistan amid the pandemic, orderly foreign exchange market conditions and, more recently, Eid-related inflows have contributed to record levels of remittances this year.
Prime Minister Imran Khan on Tuesday praised overseas Pakistanis for sending a record $2.8 billion in remittances in April.
“I have always believed overseas Pakistanis to be our greatest asset,” the premier said in a Twitter post.
“In April, your remittances rose to an all-time high of $2.8bn. Remitting $24.2bn in the first 10 months of FY21, you have broken the record level achieved in the entire FY20,” he said and added, “Thank you for your faith in Naya Pakistan.”
The inflow of workers’ remittances into Pakistan hit an eight-month high at $2.72 billion in March 2021 ahead of the start of Ramazan. The robust inflows have improved the country’s capacity to make international payments, mainly for imports and foreign debt servicing, and build its foreign currency reserves.
March also became the 10th month in a row when remittances sent home by overseas Pakistanis stayed above $2 billion. Workers’ remittances increased 43 percent to $2.72 billion in March compared to $1.90 billion in the same month of previous year. Inflows were 20 percent higher compared to February 2021, the State Bank of Pakistan (SBP) reported the same month. – TLTP