Record breaking remittances reach above $2 billion for 10th consecutive month in a row

By Ahsan Zafeer ⏐ 5 years ago ⏐

2 min read

The flow of workers’ remittances into Pakistan continued its record run of going above $2 billion for the 10th consecutive month in March, State Bank announced in a tweet. At $2.7 billion, they exhibited growth of 20% compared to February & 43% compared to March 20, and the country could be on track to reach an all-time high in remittances in 2021. Cumulatively, the remittances have risen to $ 21.5 billion during July-Mar FY21, contrary to the World Bank’s forecast of a sharp decline in global remittances as well as its own expectation that the pandemic would keep remittances flat, up by 26% over the same period last year.

In February, the country received remittances worth $2.26 billion, which was 24% higher than $1.82 billion in the same month of the previous year. Cumulatively, in the first eight months (July-February) of the current fiscal year, the remittances grew 24% to $18.74 billion compared to $15.10 billion in the same period of last year.

If the current trends continue, “Remittances for the full fiscal year 2020-21 will be close to $28 billion,” according to the reports. Remittances from UK, Europe, Saudi Arabia, UAE, and other GCC countries comprise the major chunk of the total revenue received from the overseas Pakistanis, with Saudi Arabia taking the lead.

Previously, PM Imran Khan took to Twitter to thank the overseas Pakistanis for “8th consecutive month of remittances above $2b”.

Remittances from overseas Pakistanis were $2.27 bn in Jan, up 19% over Jan 2020 – 8th consecutive month of remittances above $2b. To date in this fiscal year they are up 24% compared to last yr. This is a record for our country and I thank our overseas Pakistanis.

— Imran Khan (@ImranKhanPTI) February 15, 2021

One major factor driving remittance growth in the country has been the pandemic-hit travel restrictions which have made the overseas residents send in more money back home due to reduced travel expenses. The stoppage of the illegal hawala-hundi system of sending remittances back to the country from abroad amid partial suspension of international flights during the ongoing Covid-19 pandemic is also a driving factor behind the skyrocketing remittances.

foreign remittances, State Bank of Pakistan

Ahsan Zafeer

A digital marketing professional specializing in content-based functional areas – Ahsan Zafeer is driven by a never-ending passion for developing, nurturing, and strategizing key content aspects. He writes extensively on tech, digital marketing, SEO, cybersecurity, and emerging technologies. He also serves as a digital marketing strategist and freelance consultant for globally oriented organizations. He tweets @AhsanZafeer