Remittances hit seven-month high of $2.5 billion in March

By Staff Reporter

KARACHI: Pakistanis living abroad sent home a record $2.5 billion in remittances in March, marking a seven-month high, data from the State Bank of Pakistan showed on Monday.

The central bank’s data revealed that the inflow of workers’ remittances was 27 percent higher than February, but 11 percent lower than in March 2022.

Pakistan is currently facing a severe economic crisis as it struggles with high external debt, a weakened local currency, and declining foreign exchange reserves. The country is urgently in need of dollar inflows to stabilize the situation.

Analysts said the historical trend shows that Pakistanis abroad usually send record-high remittances ahead of Eid festivals each year.

Remittance inflows remained relatively high as non-resident Pakistanis used legal channels to send funds to their families, given the shrinking gap between rates in the interbank and open market, they added.

In March, Pakistani expatriates in Saudi Arabia topped the list of remittances by sending $563.9 million, a 24.04 percent increase from $454.6 million in February.

Pakistanis living in the UAE sent home $324 million, a 25.52 percent increase from $406.7 million, and remittances from overseas Pakistanis in the UK increased by 33.12 percent to $422 million, compared to $317 million in February.

Analysts attributed the monthly increase in remittances to the Ramzan factor, which usually fetches higher flows due to family commitments, welfare, and charity.

Analyst Tahir Abbas of Arif Habib Limited stated that the inflows in the upcoming months are expected to remain elevated due to another Eid falling by the end of this fiscal year.

Terming the increase a “good omen,” analyst Samiullah Tariq of Pakistan-Kuwait Investment Company said the March numbers were the highest in the past seven months.

“However, this year Ramzan has started earlier, which is why remittance inflow increased earlier than last year.”