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Friday March 29, 2024

Remittances touch $5 billion in first quarter

KARACHI: Remittances sent to Pakistan by foreign workers increased four percent during the first quarter of the current fiscal year of 2015/16, the central bank’s data showed on Monday. Pakistanis living abroad remitted an amount of $5 billion in July-September FY16 as compared to $4.775 billion during the corresponding period

By Erum Zaidi
October 13, 2015
KARACHI: Remittances sent to Pakistan by foreign workers increased four percent during the first quarter of the current fiscal year of 2015/16, the central bank’s data showed on Monday.
Pakistanis living abroad remitted an amount of $5 billion in July-September FY16 as compared to $4.775 billion during the corresponding period of the last fiscal year.
During the month of September, remittance flows were $1.775 billion, which was 1.57 percent higher than $1.748 billion in the same month last fiscal.
Many analysts said the first quarter’s numbers reveal an extraordinary acceleration, and remittance inflows seem to be clicking into normal pace rather than slowing down.
“The peer countries in South Asia are believed to be ten largest remittance recipients, who register average six to seven percent growth. However, in the past Pakistan witnessed 16 to 17 percent growth,” said Dr Ashfaque H Khan, Dean at Business School, NUST.
“The ongoing crackdown by the government against corruption and money laundering is likely to affect remittance flows in future,” he said.
Another analyst noted that the pace of remittances in the first half were usually sluggish, but gained upward momentum in the second half of each fiscal year.
“I foresee remittances to remain resilient this fiscal year due to recovery in oil prices in the Middle East and the rebounding US economy,” said Khurram Schehzad, an analyst.
Remittance inflows reached all-time high of $18.454 billion during FY15.
Monthly remittance cash inflows from Saudi Arabia, the largest source of remittances to Pakistan declined to $483.21 million in September 2015 against $495.63 million in September 2014.
Inflows from the UAE amounted to $428.13 million as compared to $396.28 million. The overseas workers living in the United States sent in $260.97 million, which was lower than the amount of $252 million sent in September last year.
Inflows from UK and GCC countries stood at $233.37 million and $201.34 million respectively against $226.72 million, $216.84 million last year.