24.4 C
Islamabad
Saturday, October 1, 2022

Remittances decline 25.4% to $2.3 billion in May after government change

Pakistan’s remittances decreased 25.4 percent month on month in May, placing further strain on the external account and the rupee, which has already touched new lows against the dollar this week, according to central bank statistics released on Friday.

According to figures from the State Bank of Pakistan (SBP), the country received $2.3 billion in remittances in May, down from a record high of $3.1 billion the previous month.

Rs. 9.5 trillion budget presented with 5 percent GDP growth target

In May, remittances decreased by 6.9% year over year. A year earlier, these inflows totaled $2.5 billion. “Workers’ remittances have remained above the $2 billion threshold since June 2020, at $2.3 billion in May 2022,” the SBP said in a statement on the same day.

The SBP explained that Pakistanis working overseas sent fewer remittances home, owing to the regular seasonal post-Eid decrease and related long holiday.

Remittances grew by 6.3 percent YoY to $28.4 billion in the first 11 months of this fiscal year, according to the report.

According to SBP data, Saudi Arabia ($542 million), the United Arab Emirates ($435 million), the United Kingdom ($354 million), and the United States of America ($233 million) were the largest sources of remittances in May 2022.

A substantial number of Pakistanis work in other countries. The drop in remittances sent by these workers isn’t good for the country’s balance of payments.

Pakistan gets record $31 billion remittances in the 2021 calendar year

A substantial number of Pakistanis work in other countries. The drop in remittances sent by these workers isn’t good for the country’s balance of payments.

In the month of May, foreign exchange inflows into roshan digital accounts (RDA) decreased 22.85% to $189 million.

Pakistan is battling to keep its budget problems under control. It is experiencing a balance of payments problem, with the central bank’s foreign exchange reserves decreasing to $9.2 billion, which is only enough to cover 1.35 months’ worth of import payments, as well as rising inflation.

In the first ten months of FY2022, the country had a current account deficit of $13.8 billion, compared to $543 million the previous year.

Related Articles

Latest Articles