ISLAMABAD: The overseas Pakistani workers’ remittances posted a historic annual high of US$29.4 billion during the year 2020-21 (Jul-Jun), showing an increase of 27 percent when compared with the preceding years’ remittances worth of $23.13 billion.
“With inflows of around $2.7 billion in June 2021, workers’ remittances continued their unprecedented streak of above $2 billion for a record 13th consecutive month,” said a statement issued by the State Bank of Pakistan (SBP) on Tuesday.
On year-on-year basis, the inflows posted 9 percent growth in June 2021 over the same month of last year while on month-on-month basis the growth was recorded at 8 percent in the corresponding month against May 2021.
Seasonal pre-Eid related inflows helped to further boost remittances level during June, the statement said. The historic increase in the inflows has helped improving the country’s external sector position despite the challenging global economic conditions in the past year.
Remittances registered a substantial 27 percent growth in FY21 over last year, the fastest rate of expansion since FY03.
Remittance inflows during FY21 were mainly sourced from Saudi Arabia ($7.7 billion), United Arab Emirates ($6.1 billion), United Kingdom ($4.1 billion) and the United States ($2.7 billion). Overall, record high inflows of workers’ remittances during FY21 have been driven by proactive policy measures by the Government and SBP to incentivize the use of formal channels, curtailed cross-border travel in the face of COVID-19 infections, altruistic transfers to Pakistan amid the pandemic, and orderly foreign exchange market conditions.