Prime Minister Imran Khan announced via Twitter on Friday that Pakistan hadreceived $2.4 billion in remittances in December 2020.
The tweet read: “I want to thank our overseas Pakistanis for yet anotherrecord-breaking month of remittances in Dec: $2.4 billion. MashaAllah, 1sttime in Pakistan remittances have been above $2 billion for 6 consecutivemonths”.——————————
The total remittances received for six months of this fiscal year amount to$14.2 billion, which shows 24.9 percent growth as compared to the previousfiscal year.
This is the highest half-yearly growth since FY07.
Remittance inflows have been well-diversified. Most of the inflows duringH1-FY21 were sourced from Saudi Arabia ($4.0 billion), United Arab Emirates($3.0 billion), United Kingdom ($1.9 billion) and United States ($1.2billion).
This strong growth in workers’ remittances is attributable to the increaseduse of formal channels on the back of sustained efforts by the governmentand SBP to encourage inflows through official channels as well as limitedcross-border travel due to the second wave of the COVID-19 pandemic,together with favorable foreign exchange market dynamics.
Read Top Stories
The Managing Director at Khadim Ali Shah Bukhari Securities, A.A.H Soomrospoke to ProPakistani and said, “Extended COVID-19 lockdowns coupled withincreased formal channels are keeping remittances super strong. The economyis getting solid, and remittances are paving way for higher imports”.——————————
He said that the Roshan digital accounts are likely to keep the momentumupwards, adding, “Expect foreign investment to increase in debt marketalso”.
CEO of the financial advisory Alpha Beta Core, Khurram Schezad toldProPakistani,
Remittances have also increased because travel (informal channel ofremittances) has decreased due to Covid-19, and that has made remittancesflow through formal channels. Furthermore, those who are moving backpermanently owing to Covid-19 are also transferring their savings andsettlements back to Pakistan.
