ISLAMABAD – The workers’ remittances witnessed a robust growth of 13.2percent during the first quarter of the current fiscal year (2018-19), withinflows crossing the US$ 5.0 billion mark in a quarter for the first time.The increase in remittances was more pronounced from the non-GCC (GulfCooperation Council)corridors, especially the United States and United Kingdom owing to manyfactors, official data revealed.First, increased economic activity in the developed economies may haveincentivized the Pakistani diaspora in these countries to remit more totheir families, according to the first quarterly report by State Bank ofPakistan (SBP).It added that besides, the months falling before Eid-ul-Azha usuallywitness an uptick in inflows, asexpatriates remit funds back home for buying sacrificial animals.Importantly, the report said, remittances from the GCC in general, andSaudi Arabia (KSA) inparticular, witnessed marginal growth in this quarter, which might be dueto aseasonal phenomenon.Since first quarter of FY 2016-17, remittances from these corridors havebeen largely following a decliningtrajectory, barring small seasonal spikes.In first quarter of FY19,inflows from the GCC and the Kingdom of SaudiaArabia (KSA) grew by 4.0 percentand 2.8 percent, respectively.According to the report, it is possible that the pace of layoffs ofPakistani workers in theregion has fallen in recent months, which might have led to a bottoming outof the decline in remittances from the GCC.Workers’ remittances remain a key source of financing of Pakistan’spersistent tradedeficit. More importantly, it does not create a repayment or repatriationobligation.Generally, these obligations keep the current account balance underpressure, especiallywhen the trade deficit widens.The government remains committed to supporting the flow of remittances intothe country. The governmentand SBP has already taken various measures and SBP to support the inflow ofremittances into Pakistan, the report added.
Pakistan foreign remittances hit the highest ever level in first quarter of FY 2019
