January 14, 2022 (MLN): Workers’ remittances rose to $15.8 billion during 1H of FY22 which was 11.3% higher compared to the same period last year, Central Bank data showed today.
During the month of December 2021, workers' remittances continued their strong impetus of remaining above $2 billion since June 2020 as it jumped to $2.52 billion, showing a growth of 2.5% MoM and 3.4% YoY.
The country received $2.46 billion in remittances last month, while in December 2020, remittance inflows were recorded at $2.43 billion, showing that flows remain buoyant since last year, providing much-needed support to the country, which has struggled with a higher current account deficit and a depreciating currency.
Remittance inflows during December 2021 were mainly sourced from Saudi Arabia ($626.6 million), United Arab Emirates ($453.2 million), United Kingdom ($340.8 million) and United States of America ($248.5 million).
Proactive policy measures by the Government and SBP to incentivize the use of formal channels and altruistic transfers to Pakistan amid the pandemic have positively contributed towards the sustained inflows of remittances since last year, SBP said.
In a press release, SBP stated that the Jul-Nov FY22 data of Workers’ Remittances has been revised upward to reflect inflows into Roshan Digital Accounts (RDA) that are related to local consumption (like payment of utility bills, transfer to local PKR account, etc.).
Since data on these conversions was not previously available by country, these were reported under ‘other private transfers’ in the balance of payments statistics. The December 2021 data is also compiled accordingly, and this treatment will be followed going forward, SBP added.
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