Pakistan is expected to receive record remittance inflows of up to $28billion this year, as initiatives launched by the government and centralbank to facilitate overseas workers have started yielding positive resultsdespite challenges posed by the Covid-19 pandemic.
Overseas Pakistanis residing in Gulf states in general, and the UAE andSaudi Arabia in particular, are likely to maintain an upward momentum inremittances, a report published in *Khaleej Times* read. They contributed60.14 per cent of the total inflows during the July-December 2020 period.
Pakistan received $14.203 billion remittances during the first half of thefinancial year 2020-21, against $11.37 billion in the same period last year— a strong growth of 24.9 per cent. This is the highest half-yearly growthsince financial year 2006-07.
“This strong growth in workers’ remittances is attributable to theincreased use of formal channels on the back of sustained efforts by thegovernment and State Bank of Pakistan to encourage inflows through officialchannels,” said the central bank in a statement.
As per the breakdown of remittances, overseas Pakistanis residing in theUAE remitted $2.96 billion during the July-December 2020 period, comparedto $2.78 billion in the corresponding period last year — a growth of 6.5per cent.
Workers residing in Dubai sent 5.6 per cent more money back home, as theyremitted $2.45 billion during the first half of fiscal year 2020-21.Overseas Pakistanis in Abu Dhabi and Sharjah sent $418.4 million and $34.5million in remittances, respectively, showing an increase of 5.6 per centand one per cent.
Meanwhile, remittance inflows from Saudi Arabia also recorded a significantincrease during the first half of fiscal year 2020-21. Overseas Pakistanisremitted $3.96 billion, compared to $3.17 billion in the correspondingperiod last year — a growth of 24.6pc.
“Workers residing in other GCC countries remitted $1.62 billion as against$1.52 billion in the same period last year, reflecting a growth of 6.6 percent,” according to State Bank of Pakistan (SBP), the central bank.
In December, Pakistan received $2.4 billion remittances, compared to $2.1billion in December 2019, showing an increase of 16.2pc.
Read Top Stories
This is the seventh month in a row that remittances crossed the $2 billionmark. It provides a new lifeline to a struggling Pakistan economy, which isexpected to return to growth this year.
In addition to the Gulf region, remittance inflows from the United Kingdomrose to $1.88 billion from $1.23 billion in the same first-half period lastyear, recording a record growth of 51.7 per cent. Pakistanis residing inEuropean Union states remitted $1.29 billion, showing a strong growth of41.7 per cent.
Remittances from the United States also registered a growth of 47.5 percent with $1.2 billion remitted during the July-December 2020 period,against $816.8 million remitted in the previous year.
Analysts said the country may receive record remittances of up to $28billion if the similar upward growth trend continues in the second halfending on June 30, 2021. Pakistan received $23 billion in remittancesduring the financial year 2019-20.
“Interestingly, the government’s full year target is $21 billion while thecentral bank expects remittance inflows ranging between $24 billion to $26billion. The current run rate indicates that inflows may hit $28.4billion,” said Muzammil Aslam, chief executive at Tangent Capital Advisors.
“Tangent Capital expects low travelling volumes, improved product profilesincluding introduction of Roshan Digital, and more digitisation will keepremittances to robust this year,” he added.
Source:link
