ISLAMABAD (our reporter):- The remittances of overseas Pakistani workers were increased by 6 percent to $31.2 billion during the outgoing fiscal year 2021-22 as compared to the previous fiscal year 2020-21 mainly due to substantial growth in flows from USA and European Union.
According to the latest data issued by the State Bank of Pakistan, the overseas Pakistani workers have remitted $31.23 billion to Pakistan during the outgoing fiscal year as compared to $29.45 billion in the last financial year 2020-21, up by 27pc from the previous fiscal.
The overseas workers’ remittances increase by 18.5 percent to $3.08 billion from USA, 23.2 percent to $3.36 billion from European Union, 9.7 percent to $4.5 billion from UK, 8.7 percent to $3.6 billion from other GCC countries including Bahrain, Kuwait, Qatar and Oman during the outgoing fiscal year as compared to the previous year.
The inflows from Pakistani overseas living in Saudi Arabia remained almost stagnant during the period as they remitted $7.74 billion in the fiscal year 2021-22 as compared to $7.72 billion in the fiscal year 2020-21.
The remittances from Malaysia were decreased by 30 percent to $144 million and 8 percent to $78 million from Japan during the period.
In June, remittances rose to $2.76 billion, increased by 18.4 percent as compared to May 2022 and 1.7 percent as compared to June 2021.
The remittances were mainly sourced from Saudi Arabia ($666 million), United Arab
Emirates ($495 million), United Kingdom ($455 million) and United States of America ($285 million) during June 2022.
The analysts believe that the remittances to the country stayed healthy underpinned by the government incentives to the expats for sending money home through official channels.
Limited air travel of overseas Pakistanis to the homeland due to the Covid-19 curbs in various regions also a reason in more fund transfers through legal channels and supported the rise in remittances, they believe.
Growth in remittances is a good sign for the country’s economy since this is the biggest source of foreign exchange earnings for Pakistan after receipts of exports.
The country has received $31.76 billion through export of goods during the outgoing fiscal year.
Remittances largely finance the country’s trade deficit, contribute to the forex reserves accumulation and reduce the government’s external financing needs.
The trade deficit was surged by 55 percent to $48.2 billion due to high import bill of $80 billion during the outgoing fiscal year as compared to the previous year.