Current Affairs

Remittances Still Above $2 Billion Despite 14.9% Drop in January

The inflows of remittances suffered a fresh blow as they declined by 5 percent in January 2022 compared to the corresponding period last year, partly reflecting an easing of travel restrictions. Compared to December 2021, the remittances fell by 14.9 percent on a month-on-month basis due to seasonality.Official numbers by the State Bank of Pakistan (SBP) revealed that inflows of remittances stood at $2.14 billion in January 2022 and remained above $2 billion for the 20th consecutive month.

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">At $2.14bn in Jan22, remittances moderated compared to previous month due to seasonality but remained above $2bn threshold for 20th straight month. So far this FY, remittances have risen to a record high of $18bn, up 9.1% over the same period last year. <a href="https://t.co/7XBd4uNES4">https://t.co/7XBd4uNES4</a> <a href="https://t.co/pc51WUVf49">pic.twitter.com/pc51WUVf49</a></p>&mdash; SBP (@StateBank_Pak) <a href="https://twitter.com/StateBank_Pak/status/1492136163787878402?ref_src=twsrc%5Etfw">February 11, 2022</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Economic analyst, A. H. H. Soomro, told ProPakistani,

Resumption of travel and high base is yielding into a reality check. Post-Covid, the outflow of labour isn’t going to be as high as pre-Covid days to Arab countries. The only way to preserve forex reserves is through import substitution and exports growth. Policymakers have to double up and live within means. The PTI govt has had a ball with remittances growth. From now onwards, export growth is badly needed.

Between July 2021 and January 2022, workers’ remittances have surged to $18 billion, 9.1 percent higher than the same period last year. Remittances sent by overseas workers maintained their stability with over $2 billion inflows recorded in January.

Remittances inflows are likely to set a new record in the current financial year if the growth persists in the months to come. It is noteworthy that the use of banking channels by overseas Pakistanis helped increase the inflows of remittances in the country.

Inflows of remittances during January 2022 were mainly sourced from Saudi Arabia ($540 million), the United Arab Emirates ($374 million), the United Kingdom ($320 million), and the United States of America ($208 million).

Related posts
Current AffairsPakistan

Electricity crisis and the rising spectre of social unrest

There has been an increase of 108% in gas bills. Only 20% of total electricity bill pertains to…
Read more
Current Affairs

Imran Khan arrested in Lahore shortly after Islamabad court finds him guilty in Toshakhana case: PTI

PTI Chairman Imran Khan, shortly after an Islamabad trial court declared him guilty of “corrupt…
Read more
BusinessCurrent AffairsPakistanPolitics

Pakistan slams IMF's 'intervention' in internal matters

ISLAMABAD: State Minister for Finance and Revenue Aisha Ghaus Pasha Wednesday slammed the…
Read more
Newsletter
Become a Trendsetter
Sign up for Davenport’s Daily Digest and get the best of Davenport, tailored for you.

Leave a Reply

Your email address will not be published. Required fields are marked *