Remittances continued their record run of above $2 billion for the 10th consecutive month from the last year to this year.
The inflows rose to $2.7 billion in March 2021, 20 percent higher than last month and 43 percent higher than March 2020, according to data released by the State Bank of Pakistan (SBP).
Cumulatively, they have risen to $21.5 billion during July-Mar FY21, up 26 percent over the same period last year.
Remittance inflows during July-March of the current financial year were mainly sourced from Saudi Arabia ($5.7 billion), United Arab Emirates ($4.5 billion), United Kingdom ($2.9 billion), and the United States ($1.9 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.
Remittances continued their record run of above $2bn for 10th consecutive month in Mar. At $2.7bn, they were up 20% compared to Feb & 43% compared to Mar20. Cumulatively, they have risen to $21.5bn during Jul-Mar FY21, up 26% over the same period last year:https://t.co/NMRGk3VCx5 pic.twitter.com/iTm8SlJFbg
— SBP (@StateBank_Pak) April 12, 2021
The introduction of the Roshan Digital Accounts (RDA) for overseas Pakistanis is attracting remittances through banking channels, reflecting healthy volumes of over $800 million in the overall remittances numbers.
A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities, told ProPakistani,
This is phenomenal support to the FX reserves in times of surge in imports. Expect the numbers to be higher in April as Ramzan falls in earlier. Given the rampant rise in cases amid the third wave, no international travel, and nonexistent religious tourism, expect remittances to keep providing much-needed support to the economy.
It is expected that remittances may further go up in the current month of April due to Ramzan as overseas Pakistanis send additional amounts to their relatives for Zakat and Eid’s expense.
Analysts forecast that remittances are likely to cross a mark of $28 billion in the current financial year keeping in view the persistent inflows through banking channels.
The growth in inflows of remittances continues to support the stability of the current account, foreign exchange reserves, and the Rupee value against Dollar.
Prime Minister Imran Khan also highlighted the development while congratulating the Overseas Pakistani community on the achievement.
The love & commitment of Overseas Pakistanis to Pakistan is unparalleled. You sent over $2bn for 10 straight mths despite Covid, breaking all records. Your remittances rose to $2.7bn in Mar, 43% higher than last yr. So far this fiscal yr, your remittances rose 26%. We thank you
— Imran Khan (@ImranKhanPTI) April 12, 2021
This sustained increase in workers’ remittances largely reflects the growing use of banking channels, which is attributed to continuous efforts by the Government and SBP to attract inflows through the official channels, limited cross-border travel amid the second wave of COVID-19, and a flexible exchange rate regime.
The country continues to enjoy the benefits of the increasing use of formal channels, Roshan Digital Accounts rising asset values, and currency stability.