According to SBP, the decline is mostly attributable to the fewer working days in July as a result of Eidul Adha.
This was the 26th month in a row when receipts were over the $2 billion mark.
“Remittances are a lifeline for Pakistan to fill the gap between imports and exports,” former adviser says.
KARACHI: Despite a decline of more than 8% month-on-month in July 2022, worker remittances continued to exceed $2 billion in line with the trend over the previous few months.
The State Bank of Pakistan (SBP) published figures on Tuesday showing that the amount of money that Pakistanis living abroad sent home in remittances fell to $2.5 billion in July, down 8.6% from the previous month and 7.8% from the previous year.
According to SBP, this was the 26th month in a row when revenues were over the $2 billion mark.
Fewer working days in the first month of the fiscal year 2022–23, according to the central bank, were the cause of the reduction.
“This decrease largely reflected the lower number of working days in July as a result of Eidul Adha, at 17 working days compared to 22 last month and 18 in July 2021,” it said
“Remittances are a lifeline for Pakistan to fill the large gap between imports and exports,” former advisor to Finance Ministry Dr Khaqan Najeeb said while speaking to a Tv programme
“Pakistan’s remittance initiative must be kept strong to ensure formal channels of remittances are used as the world travel opens,” he said
Remittances reached $31.2 billion in fiscal year 2021-22, compared to $29.4 billion received in FY21.
Remittances by country
Inflows from the United States of America (USA) decreased by 8.26% to $254.3 million in July compared to the same month last year, according to country statistics. In the United Kingdom, they increased by 3.46% to $411.7 million (UK).
Inflows from the United Arab Emirates (UAE) declined 16.7% to $456.2 million, while remittances from Saudi Arabia fell 12.01% to $456.2 million.
Furthermore, remittances from neighbouring Gulf Cooperation Council (GCC) nations fell by 6.56% to $280.6 million, while inflows from European countries fell by 2.22% to $294.4 million in the month under review compared to the same month last year.
