Pakistan received most remittances from Saudi Arabia followed by the US and UAE
Foreign remittances to Pakistan hit a record high of $23.12 billion in the fiscal year 2020, according to the latest press release from the country’s central bank. It was a 6.4% increase from the fiscal year 2019 when the remittances from overseas Pakistanis accounted for $21.74 billion. The remittances in June were also a record high of $2.47 billion, nearly a 51% jump year over year. The remittances between March and June grew 7.8% as well despite the coronavirus.
“On a cumulative basis, workers’ remittances increased to a historic high level of $23.120bn during FY20, witnessing a growth of 6.4pc over $21.739bn during FY19,” said the SBP.
Expats from Saudi Arabia contributed the most with $619.4 million followed by the USA with $452.0 million. Contributions from UAE accounted for $431.7 million and the UK $401.0 million. The numbers were significantly higher than those posted in May.
State Bank of Pakistan attributed the jump in remittances to a couple of main factors. One of them is that since movement is now easier than before in many countries, more people are sending money. Some were unable to send previously and may have sent accumulated amounts. People may also be sending more money to ensure that the families back home have enough resources during the tough times caused by the pandemic. The zakat and sadaqat remittance during the holy month of Ramazan also increased the inwards cash flow.
Certain government policies such as the extension of Reimbursement of TT Charges under the free send remittance scheme to smaller remitters helped. The threshold was lowered to $100 from $200. The use of proper channels for sending money home were incentivized by the financial institutions also encouraged the remitter.