Workers' remittances jump by 27% YoY in Aug'21

September 10, 2021 (MLN): Workers' remittances continued their strong trend, reaching $2.66 billion in August 2021. This is the sixth consecutive month when inflows recorded around $2.7 billion on average, and the fifteen consecutive months they have been above $2 billion.

In terms of growth, remittances increased by 26.8 percent YoY in August 2021, which is a decade-high growth rate for that month, according to the data released by the State Bank of Pakistan (SBP).

On a sequential basis, inflows were marginally lower than in July, reflecting the usual post-Eid slowdown. Nevertheless, this seasonal decline was far less this year compared to historical trends.

Cumulatively, at $5.36 billion, remittances grew by 10.4% during the first two months of this year over the same period last year.

Remittance inflows during August 2021 were mainly sourced from Saudi Arabia ($694 million), United Arab Emirates ($512 million), United Kingdom ($353 million) and the United States ($279 million).

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, altruistic transfers to Pakistan amid the pandemic, and orderly foreign exchange market conditions have positively contributed towards the sustained improvement in remittance inflows since last year.

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