Pakistan’s foreign remittances reached a HISTORIC high of $29.4 billion in FY21
The growth in FY21 is the highest since FY03.
Pakistan’s foreign remittances witnessed a historic annual high of $29.4 billion in the last fiscal year (FY21), the fastest growth in the past 18 years.
The remittances also continued their streak of exceeding $2 billion for the 13th consecutive month.
This was revealed by the SBP (State Bak of Pakistan) in a report released on Tuesday.
1/2 On a cumulative basis, remittances rose to a historic annual high of $29.4 billion in FY21. This has helped improve the country’s external sector position despite the challenging global economic conditions in the past year. pic.twitter.com/BHsiHl5126
— SBP (@StateBank_Pak) July 13, 2021
On a cumulative basis, remittances amounted to a whopping $29.4 billion during the fiscal year, a 27% year-on-year (YoY) increase. The growth in FY21 is the highest since FY03.
2/2 Remittances registered a substantial 27 percent growth in FY21 over last year, the fastest rate of expansion since FY03: https://t.co/7XBd4uNES4
— SBP (@StateBank_Pak) July 13, 2021
Likewise, the remittances increased 9% to $2.7 billion in June 2021 on a YoY basis, while they recorded a surge of 8% on a month-on-month basis compared to May 2021.
According to the SBP, the surging remittances have helped improve Pakistan’s external sector position despite the challenging worldwide economic circumstances in the past year.
— Arif Habib Limited (@ArifHabibLtd) July 13, 2021
The SBP added that several factors had driven the record foreign remittances.
These include proactive policy measures by the authorities and the SBP to incentivize formal channels, curtailed cross-border travel in the face of COVID-19 infections, altruistic transfers to Pakistan amid the pandemic, and orderly foreign exchange market conditions.
From where did the remittances come from in FY21?
KSA (Kingdom of Saudi Arabia)
Saudi Arabia accounted for more than a quarter of all foreign remittances sent to Pakistan in FY21.
A whopping amount of $7.667 billion was remitted to the South Asian state from the kingdom.
UAE (United Arab Emirates)
The United Arab Emirates (UAE) was the source of the second-highest remittances sent to Pakistan in FY21.
A total amount of $6.114 billion was remitted to the South Asian nation from the Arab Gulf country.
Out of all the emirates, the Emirate of Dubai accounted for remittances worth $5.0653 billion independently.
The Emirate of Dubai was followed by the Emirate of Abu Dhabi ($944.7 million), the Emirate of Sharjah ($79.4 million), and other emirates ($24.6 million).
The U.K. and the U.S.
The United Kingdom (U.K.) accounted for $4.0671 billion worth of remittances in FY21.
Likewise, the United States of America (USA) accounted for $2.7542 billion worth of remittances in FY21.
Other GCC (Gulf Corporation Council) States
Apart from the KSA and the UAE, the other GCC states became a source of $3.3099 billion worth of remittances in FY21.
Out of this, $1.0835 billion were remitted from Oman, $903 million from Qatar, $858.6 million from Kuwait, and $464.7 million from Bahrain.
The E.U. (European Union)
The E.U. accounted for $2.7093 billion worth of remittances in FY21.
Out of this, $600.8 million were remitted from Italy, $426.8 million from Germany, $419.8 million from France, $401.8 million from Spain, $273.7 million from Greece, $251.8 million from Belgium, $153.2 million from Ireland, $71.8 million from Denmark, $61.9 million from Sweden, and $47.8 million from the Netherlands.
Around $593.5 million worth of remittances were sent from Australia, $586 million from Canada, $203.7 million from Malaysia, $111 million from Norway, $84.9 million from Japan, and $40.9 million from Switzerland.
A further $1.1295 billion worth of remittances were sent from other countries.
What are your views on this? Share with us in the comments below.