Overseas Pakistanis are sending remittances to the tune of Rs. 31.2 billion, an all-time record. 31.2 billion, an increase of 6 percent, compared to $29.4 billion in the previous financial years.
With a slight increase in last year’s figures, the highest level of remittances to Saudi Arabia was $7.74 billion. They were $5.8 billion for FY22, compared to $6.1 million in FY21. In FY22, the remittances to the Gulf countries (Bahrain Qatar, Kuwait, Kuwait, Oman) totaled $3.6 billion, compared with $3.3 billion reported for FY21.
Remittances from EU countries saw a handsome increase of $3.3 billion in FY22, compared to $2.7 billion reported for FY21.
According to the State Bank of Pakistan, workers’ remittances reached a record high in FY22.
The record FY22 remittances rose six percent to $31.2 billion. This is in line with the forecast. They grew by 18% compared with May 22 and 21% compared to June 21 to $2.8 Billion in June.
In June, the remittances grew to $2.76 Billion, an increase of 18.4 percent (MoM), and 1.7 percent (YoY). They came mainly from Saudi Arabia ($666 millions), the UAE ($495million), the UK ($455million) and the USA ($285million). The sum of all remittances increased by 6.1 percent in FY22 to $31.2 billion, a record, compared to FY21.
The government and the regulator took various steps to increase inflows. These included the introduction of the Roshan Digital Account, incentives to foreign Pakistanis (Sohni Dahrti Program), banks and exchange companies to collect higher remittances and facilitate expatriate Pakistanis who live in other countries. Also Read
After the removal of COVID-19-related restrictions, there was an increase in the number of Pakistanis living abroad who have work opportunities in other countries.
Remittances from abroad played an important role in reducing the negative impact of higher imports on balance of payments. This is one of the strong components of macroeconomic indicators that consistently bodes well for the country’s economic health.