In positive economic development, Pakistan Foreign remittances register significant rise

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In positive economic development, Pakistan Foreign remittances register significant rise

KARACHI: Remittances from Pakistani workers employed abroad increased to $2.3 billion in September, a 31.2pc rise Year-on-Year (YoY) and up 9pc compared to the previous month, the country’s central bank said on Monday.

Remittances remained above $2 billion for a fourth consecutive month, capping a higher than expected inflow of finances in the first quarter of FY2020-21 for the South Asian nation, which has struggled with current account deficits and a depreciating currency.

“The level of remittances in September was slightly higher than SBP’s projections of $2 billion,” the State Bank of Pakistan (SBP) said in a statement, adding that first quarter figures were 31.1pc higher YoY.

The details show that in September, the worker’s inflow from USA stood at $180.35 million, while an amount of $289.3 million was sent from United Kingdom.

Similarly from Saudi Arabia, Dubai, Abu Dhabi, Sharjah, Bahrain, Kuwait, Qatar, and Oman, the workers’ inflow was recorded as $665.8 million, $364.1 million, $68.26 million, $68.68 million, and $86.04 million respectively.

From European countries, Pakistan received $207.33 million whereas from Malaysia, the Pakistanis sent $16.8 million from Australia $46.7 million, from Canada $39 million and from Japan, an amount of $7 million was transferred.

Multiple factors contributed to the increase, including Pakistan’s crackdown on illegal channels, Samiullah Tariq, head of research and development at Pakistan Kuwait Investment Company, told Reuters.