Remittances surge 25%, amount to $1.93b

KARACHI: In a positive development, the remittances received from overseas Pakistanis rose markedly in July 2018, according to data released by the central bank on Friday.

Remittances stood at $1.93 billion in the first month of fiscal year 2019, up 25.17% compared to $1.54 billion in the same month of previous year.

The inflows were 21.03% higher than the money remitted in June 2018.

Remittances play a major role in stabilising Pakistan’s external sector as they make up around one-third of the import bill and cover the deficit in the trade of goods account. Nevertheless, in recent times, they have come under pressure due to global economic slowdown, particularly in Middle Eastern countries on the back of low crude oil prices.

After being on a continuous decline, remittances from Saudi Arabia and the UAE – the two most important sources of remittances for Pakistan in the Gulf – surged likely due to upcoming Eidul Azha in late August.

Inflows from Saudi Arabia amounted to $437.5 million in July 2018, up from $408.8 million in the same month of previous year. Inflows from the UAE amounted to $433.4 million, an increase of 29.5% compared to $334.6 million in the previous year.

Workers in the US sent $280.3 million while those in the UK sent $277.5 million compared to $193.7 million and $199.2 million respectively.