ISLAMABAD - The foreign remittances sent by overseas Pakistan showed growth of nearly 8 percent on monthly basis and were recorded at $2.7 billion in August.

“Workers’ remittances recorded an inflow of $2.7 billion during August 2022,” said State Bank of Pakistan. In terms of growth, remittances increased by 7.9 percent on monthly basis and by 1.5 percent on year to year basis. Meanwhile, the remittances recorded 3.2% decline during first two months (July and August) of current fiscal year. The remittances reduced to $5.25 billion in July-August period of the year 2022-23 from $5.42 billion in the corresponding period of the previous year. The remittances have bounced back in August after recording massive decline in July. The remittances had fallen in July by 8% due to fewer working days on account of Eid-ul-Adha. However, it should be noted that this was the 27th successive month in which receipts remained above the $2 billion threshold.

The breakup of remittances received showed that Pakistanis residing in Saudi Arabia remitted the largest amount of $691.8 million in August 2022. It was 19.15% higher than the $580.6 million received in July 2022. Expatriates in the UAE sent home 16.48% higher amount as receipts rose from $456.2 million to $531.4 million. Remittances from overseas Pakistanis in the UK dropped 10.2% to $369.7 million. They had sent $411.7 million in July 2022. Overseas Pakistanis living in Bahrain sent $42.8 million, $77.3 million from Kuwait, $88.6 million from Qatar whereas $92.1 million were sent from Oman. Similarly the inflows from Germany, France, The Netherlands, Spain, Italy, Greece, Sweden, Denmark, Belgium, and Ireland were recorded at $40.1 million, $37.1 million, $4.6 million, $45.4 million, $76 million, $30.5 million, $5.9 million, $5.2 million, 19.1 million and $10.9 million respectively. From Malaysia, Norway, Switzerland, Australia, Canada, and Japan, the workers dispatched $14.5 million, $10.6 million, $3.7 million, $60.9 million, $56.3 million, $56.3 million, and $7.1 million respectively. Remittances from South Africa during the month under review stood at $26.9 million while that from South Korea stood at $8.3 million. Similarly $72 million were received from other countries.

According to the ministry of finance, in July FY2023, workers’ remittances were recorded at $ 2.5 billion ($ 2.7 billion last year), decreased by 7.8 percent and have continued to remain above the $ 2 billion mark since June 2020. On MoM basis, remittances decreased by 8.6 percent in July 2022 as compared to June 2022 ($ 2.7 billion). This decrease largely reflected the lower number of working days in July because of Eid, at 17 working days compared to 22 last month and 18 in July 2021. The ministry of finance has projected that remittances are expected to hold around $3 billion in the coming month.