Foreign Remittances from Working segment of the overseas Pakistanis continued exceptional increase in February 2021, by reaching $2.266 billion.
As per the latest data released by the State Bank of Pakistan (SBP), the workers’ remittances enhanced by 24.17 percent as compared to the same month in last year 2020. On a month-on-month basis, a decline of 0.34pc was recorded from $2,273.6 million recorded in January 2021.
According to Press Release of State Bank of Pakistan, Workers’ Foreign Remittances in February 2021 for the 9th consecutive month, workers’ foreign remittances remained above $2 billion in February 2021. Workers’ remittances amounted to $2.266 billion in February 2021, around the same level as the previous month and 24.2 percent higher than in February 2020.
Sustained Rise of 24 Percent
During Jul-Feb FY21, workers’ remittances reached $18.7 billion, 24.1 percent higher than the corresponding period last year. A large part of workers foreign ‘remittance inflow during Jul-Feb FY21 was sourced from different countries. Like from Saudi Arabia ($5.0 billion), United Arab Emirates ($3.9 billion), United Kingdom ($2.5 billion) and United States ($1.6 billion).
Reasons of increase in Foreign Remittances
Reasons behind the increase in foreign remittances include policy measures undertaken by the Government and SBP. These also include inflows through formal channels and limited cross border travels due to COVID-19. Medical expenses and transfers to Pakistan due to pandemic, and exchange market conditions are also factors. These reasons contributed to this sustained rise in workers’ foreign remittances in Pakistan in past one year.