Pakistan’s foreign remittance inflow dropped by 1.43 percent

The introduction of a payment gateway would help increase remittances and will also facilitate the transactions at the country level.

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  • The head of the remittance department at the state-owned bank says that overseas workers usually hold back the remittances waiting for the return of stability in the rupee.
  • Foreign remittances witnessed a drop of 1.43 percent that amounts to $5.47 billion in the quarter that ended on September 30, 2019.
Pakistan_foreign_remittances
Photo source ProPakistani.

Foreign remittances, the money sent to homes by expatriates, witnessed a drop of 1.43 percent that amounts to $5.47 billion in the quarter that ended on September 30, 2019. This amount is less than than the remittance inflows in the same quarter of the previous year that was noted at $5.55 billion.

Remittance contributes to the country’s economy and also aids in partially financing the deficit in import payments and external debt payments. However, experts opined that it is a seasonal drop recorded in the first quarter of the current fiscal year 2019-2020, adding that the growth of 18 percent in remittances in September to $1.74 billion in comparison to $1.48 billion in September last year suggests an upward trend in the inflow of foreign remittances.

Samiullah Tariq the Head of Arif Habib Limited told The Express Tribune that the drop was seasonal as it usually happened in the past as well when remittances shrank in the month after Eid-ul-Azha. He also said that an 18 percent year-on-year increase in growth is good.

He forecasted that Pakistan will most probably achieve the target of $23.5 billion in remittances during the year in progress and the foreign remittances will see an upward trend of 10 to 20 percent over the next couple of years provided the government manages to bring international payment platforms like PayPal to the country.

“Alipay is yet to introduce the payment gateway in the country,” he added. He also projected that the introduction of a payment gateway would help increase remittances among the people and will also facilitate the transactions at the country level.

He also viewed that the remittances would have been higher in 2018 had the local currency remained stable during the year. The devaluation of Pakistani currency against the greenback was an impediment to growth.

The head of the remittance department at the state-owned bank said: “Overseas workers usually hold back the remittances waiting for the return of stability in the rupee. More and more people are finding jobs abroad since the beginning of the year and this would help in increasing the remittances significantly.”

Also See: Pakistan Finalizes Multi-Billion Dollar Railway Project With China

As far as the country wise inflow is concerned the inflow from Saudi Arabia amounted to $420.88 million compared with $360.16 million in September 2018 and $363.34 million from UAE compared to  $308.13 million in the same month a year ago.

Pakistanis sent $281.91 million from the US compared to $240.49 million last year. Remittances from the UK amounted to $264.89 million compared to $216.75 million a year ago.

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