Largest inflows from Saudi Arabia, UAE
Overseas Pakistanis sent home $2.5 billion in December, making it the 18th consecutive inflow above $2 billion, the State Bank of Pakistan said Thursday.
In terms of growth, remittances increased by 2.5% on a month-on-month basis and 3.4% on a year-on-year basis in December 2021.
Remittances from Pakistani workers employed abroad surged to $15.8 billion during the first half (July-December) of the current fiscal year 2021-22, 11.3% higher than a year earlier.
The SBP revealed that remittance inflows during December 2021 were mainly sourced from Saudi Arabia ($626.6 million), the United Arab Emirates ($453.2 million), the United Kingdom ($340.8 million), and the United States of America ($248.5 million).
Proactive policy measures taken by the government and SBP, to incentivize the use of formal channels and altruistic transfers to Pakistan amid the pandemic, have positively contributed towards the sustained inflows of remittances since last year, the central bank added.
It clarified that the July-November data of workers’ remittances was revised upward to reflect inflows into Roshan Digital Accounts that are related to local consumption (such as payment of utility bills, transfer to local PKR accounts, etc.).
Since data on these conversions was not previously available to the country, these were reported under ‘other private transfers’ in the balance of payments statistics. The December 2021 data, too, was compiled accordingly.