After witnessing a 9.35% growth, foreign remittances hit $1.8b in November
Remittances were comparatively low in the first few months of the ongoing fiscal year. However, November has covered the gap for the first five months.
Witnessing a growth of 9.35%, the foreign remittances have hit a $1.8b mark in November. It helped improve Pakistan’s capacity to make import payments and foreign debt repayment.
During the same span last year, remittances stood at $1.66 billion.
“The figure of $1.81 billion is an encouraging number”, said Arif Habib Ltd. Head of Research Sammi Ullah Tariq while speaking to The Express Tribune.
He said that during the last four to five years, numbers never increased up to $1.7 billion in November. The remittances for the first five months (July to November) of the ongoing fiscal year stood at $9.29 billion, slightly better than the same period last year where the figure stood at $9.28 billion.
“Remittances were comparatively low in the first few months of the ongoing fiscal year. However, November has covered the gap for the first five months”, Tariq added.
Tariq is optimistic that the remittances for the full fiscal year will witness a 3% to 4% growth, reaching $22 billion. However, still positive but it is significantly lower than their target of 10% to 11% growth.
He said that the current account balance for surplus for October after a gap of four years.
“Therefore, the dramatic shift to surplus from the deficit seen in previous months suggests the country will not be in difficulty if the remittances remain slightly lower than the target for FY20,” he said.
Speaking about the country-wise details, the data for November 2019 showed that inflows from Saudi Arabia were $407.48 million, compared to $395.12 million during November 2018. (Statistics from the State Bank).
Similarly, overseas Pakistani workers sent $383.77 million from UAE, compared to $350.35 million in the last year.
Remittances received from Norway, Switzerland, Malaysia, Canada, Australia, Japan, and other countries amounted to $219.19 million against $207.74 million of last year.