By Staff Reporter
KARACHI: Remittance inflows to Pakistan rose 5.2% in February to $3.29 billion, State Bank of Pakistan data showed Tuesday, offering continued support to the nation’s external accounts and household spending.
The figure compares with $3.12 billion a year earlier. From the previous month, however, remittances slipped 5% from $3.46 billion in January. For the first eight months of the fiscal year, cumulative inflows reached $26.49 billion, up 10.5% from $23.98 billion in the same period a year ago.
The funds help finance imports, cushion foreign-exchange reserves and provide a vital income supplement for millions of households that rely on money sent home by expatriate workers, while also stimulating economic activity. Pakistani authorities have actively promoted formal channels for these transfers through various incentives, aiming to reduce reliance on informal hawala networks and ensure more predictable flows.
The State Bank has highlighted the impact of the Pakistan Remittance Initiative, which has been in place since 2009. Through targeted engagement with financial institutions, the number of participants in the PRI network has expanded significantly — from roughly 25 in 2009 to more than 50 by 2024. These include conventional commercial banks, Islamic banks, microfinance institutions and exchange companies. Electronic money institutions are also permitted to handle home remittances in partnership with banks. On the sending side, the number of international entities tied into the system has grown from about 45 two decades ago to around 400 currently.
Country-by-country data for February showed mixed trends across key destinations for Pakistani workers. The United Arab Emirates remained the top source, with expatriates remitting $696.2 million. That represented a 6% increase both year-on-year and from January’s $658 million. Inflows from Saudi Arabia, another major hub for Pakistani labor, fell 8% from a year earlier to $685.5 million from $745 million previously.
Remittances from the United Kingdom totaled $532 million, down 7% from the prior month but 7% higher than the year-ago period. Workers in the US sent $319.5 million, an increase of 3% from a year earlier and 8% higher than January. Inflows from European Union countries jumped 15% year-on-year to $395 million.
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