By Staff Reporter
KARACHI: Remittances from Pakistani workers employed abroad rose to a record monthly high of $3.1 billion in April, 11.9 percent higher than a year earlier, the central bank said on Friday.
On a cumulative basis, remittances also surpassed the previous record.
“With US $3.1 billion inflows during April 2022, workers remittances crossed $3 billion for the first time ever,” the State Bank of Pakistan said in a statement.
“In term of growth, during the April 2022, remittances increased by 11.2 percent month-on-month basis and 11.9 percent on year-on-year basis.”
Proactive policy measures by the previous government of former prime minister Imran Khan and the central bank to encourage more inflows through banking channels and Eid holiday-related inflows contributed to the record levels of remittances last month.
The inflows came mainly from Saudi Arabia, at $707 million, the United Arab Emirates, $614 million, Britain, $484 million, and the United States, $346 million, the central bank said, referring to cumulative figures.
Larger-than-expected money transfers from migrants overseas have provided a tonic for sickly economies including Pakistan, but the outlook for such flows remains fraught with uncertainty on record high inflation and showdown in growth in developed economies.
The resurgent flows in recent years helped Pakistan narrow current account gap, stabilise rupee and meet any overseas debt payments.
Pakistan and other developing economies have led a surprise recovery in remittances in the second half of 2020, as the slowdown in flows amid the pandemic proved less severe than initially feared.
Migrants have cushioned the pandemic’s economic blow, drawing down savings to help out families back home and sending more money via official channels rather than in person, while benefiting from access to state support, including cash handouts.
Analysts said an increase in remitted amount in fasting month of Ramazan and pre-Eid period is seen every year. They believe remittances will clock in at $30-31 billion for FY2022. “Seasonal pre-Eid related inflows helped to further boost remittances level during April,” an analyst said.
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