Pakistan’s Foreign Remittances Smash $2 Billion Mark For 16th Month In A Row

Once again, Pakistan’s foreign remittances have smashed the $2 billion mark, reaching around $2.7 billion in September 2021.

This is the 16th time in a row where the country’s foreign remittances have smashed the $2 billion mark.

This was revealed by the State Bank of Pakistan (SBP) on Friday.

Workers’ remittances recorded $2.7 bn in Sep21; up by 0.5% on m/m and 16.9% on y/y basis. Cumulatively, remittances reached to $8.0 bn in Q1-FY22; a significant growth of 12.5% over the same period last year: https://t.co/7XBd4uNES4 pic.twitter.com/7kegibXSHM

— SBP (@StateBank_Pak) October 8, 2021

On a month-on-month (MoM) basis, Pakistan’s foreign remittances have slightly increased by 0.5% in September 2021 as compared to August 2021.

Nevertheless, on a year-on-year (YoY) basis, the remittances have surged by 16.9% in September 2021 compared to September 2020.

According to the SBP, several policies by the central bank and the government have played a key role in maintaining a healthy level of remittances.

These include incentives for the use of formal channels, restricted cross-border travel due to the ongoing COVID-19 pandemic, altruistic transfers to Pakistan, and stable foreign exchange market conditions.

Where did the remittances originate from in September 2021?

Saudi Arabia

A quarter of the total remittances sent to Pakistan in September 2021 came from the Kingdom of Saudi Arabia.

An amount of $691 million was remitted to the South Asian state from the kingdom.

United Arab Emirates (UAE)

The United Arab Emirates (UAE) was the origin of the second-highest remittances sent to Pakistan in September 2021.

A total amount of $502 million was remitted to the South Asian nation from the Gulf Arab state.

Out of all the emirates, the Emirate of Dubai accounted for more than 70% of the remittances sent from the UAE, remitting $360 million to Pakistan.

The Emirate of Dubai was followed by the Emirate of Abu Dhabi ($136 million), the Emirate of Sharjah ($4.5 million), and other emirates ($1.5 million).

The U.K. and the U.S.

The United Kingdom (U.K.) accounted for $370.2 million in remittances in September 2021, while the United States (U.S.) accounted for $245 million in remittances in the same period.

The European Union (E.U.)

The European Union accounted for $299.1 million worth of remittances in September 2021.

Out of this, $77.4 million were remitted from Italy, $45.1 million from Germany, $45 million from Spain, $44.5 million from France, $32.1 million from Greece, $24.7 million from Belgium, $13.2 million from Ireland, $6.4 million from Sweden, $6.1 million from Denmark, and $4.5 million from the Netherlands.

Other Gulf Cooperation States (GCC)

Apart from Saudi Arabia and the UAE, the other GCC states became a source of $297.7 million worth of remittances in September 2021.

Out of this, $95.2 million were remitted from Oman, $79.8 million from Kuwait, $79.7 million from Qatar, and $42.9 million from Bahrain.

Other countries

Around $71.8 million worth of remittances were sent from Australia, $53.7 million from Canada, $13.2 million from Norway, $11.6 million from Malaysia, $6.6 million from Japan, and $3.3 million from Switzerland.

A further $104.4 million worth of remittances were sent from other countries.

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