Overseas Pakistanis contribution towards the economy through remittances maintained strong momentum with the value of inflows exceeding $2 billion in November for the 6th straight month of the current financial year 2020-21.
According to the State Bank of Pakistan, remittances inflows in the outgoing months reached $2.34 billion, up 2.4 percent over the previous month and 28.4 percent over November 2019.
Overall, remittances rose to an unprecedented $11.8 billion during July-Nov FY21, 26.9 percent higher than the same period last year. This is the record considerable period showing its sustainability rather than seasonal impact.
The value of remittances increased by an average of half-billion Dollars each month from July to November.
A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities, while commenting on the remittances said,
Interestingly, [the] government is having a ball. Even for [the] next new months, formal channels would galore. At this pace, [the] government can easily save $5-6bn in this fiscal year. That’s as much as the IMF bailout. This is [the] “invisible hand” helping PTI as [the] oil price crash helped PMLN in 2015. Save the USD.
During the period, remittances from Saudi Arabia stood at $3.3 billion. The contribution from Pakistan’s based in UAE stands at $2.4 billion. Remittance inflows from the UK and the USA surged to $1.5 billion and over $1 billion, respectively.
1/2 Workers’ remittances maintained their strong momentum in November, remaining above US$2 billion for a record 6th consecutive month. They rose to US$2.34 billion, up 2.4% over the previous month and 28.4% over November 2019. pic.twitter.com/BlTqCyOG4y
— SBP (@StateBank_Pak) December 11, 2020
SBP commented that the significant growth reflects continued government and SBP efforts to formalize remittances under the Pakistan Remittances Initiative (PRI), growing use of digital channels amid limited international travel, orderly exchange market conditions, and improved global economic activity.
The consistent inflows of remittances continued to strengthen the current account of the country, which remained in surplus for the past four months and likely to maintain its positive position for the next couple of months or so.
Prime Minister Imran Khan announced that the remittances sent by overseas Pakistanis to the country maintained their upward trend in November 2020, remaining above US$2 billion for a record 6th consecutive month.
More good news for Pakistan's economy as workers’ remittances continued to grow in November – remaining above US$2 billion for a record 6th consecutive month. Acc to SBP they rose to US$2.34 billion, up 2.4% over the previous month & 28.4% over November 2019.
— Imran Khan (@ImranKhanPTI) December 11, 2020