Remittances register massive decline of 24 percent in August

ISLAMABAD-Inflow of overseas workers’ remittances has registered massive decline of 24 percent in the month of August this year.
The inflows of foreign remittances were recorded at $2.1 billion in August this year as compared to $2.7 billion in the same month of the previous year, showing massive decline of 24 percent, according to the latest data of State Bank of Pakistan. Meanwhile, inflows recorded a marginal increase to clock in at $2.1 billion in August 2023, 3.1% higher on a month-on-month basis when compared to $2.03 billion in July 2023.
Workers’ remittances inflow of $4.1 billion has been recorded during first two months (July-August) of the current fiscal year (FY24) on cumulative basis, reflecting a decline of 22% YoY or $1.13 billion, as compared to $5.3 billion registered in the same period of the last year FY23. The data showed that Pakistan has received foreign remittances of $490.1 million from Saudi Arabia in August. The amount improved by 1% on a monthly basis, but was nearly 29% lower than the $692.6 million sent by expatriates in the same month of the previous year. Inflows from the United Arab Emirates (UAE) reduced by 2% on a monthly basis, from $315.5 million in July to $308 million in August.
Remittances from the United Kingdom amounted to $331.3 million during the month, a decline of 10% compared to $369.7 million in August 2022. However, remittances from the European Union improved 4% year-on-year as they amounted to $290.4 million in August 2023. Overseas Pakistanis in the US sent $262.4 million in August 2023, a year-on-year decline of 12%.
Earlier, in July FY2024, workers’ remittances were recorded at $2.0 billion ($ 2.5 billion last year), decreasing by 19.3 percent, due to several reasons included: seasonal factors post-Eid decline, political and economic uncertainty. MoM, remittances decreased by 7.3 percent in July 2023 ($ 2.0 billion) as compared to June 2023 ($ 2.2 billion). The decline is also attributed to global economic slowdown as higher inflation in developed countries has led to higher cost of living abroad, thus reducing the surplus funds that could be sent back to homeland as remittances.

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