Pakistan Remittances Increased SBP Reported

KARACHI: The Central Bank of Pakistan has released a report on Friday claiming that the remittances inflow in Pakistan has increased by more than 10 percent during the first two months of the ongoing fiscal year compared to the same period of the last year i.e. July and August 2020.The first two months of the current fiscal year have seen an inflow of $5.364 billion compared to the previous year figure of $4.86 billion last year the Central Bank released the data. The increasing trend in the inflows is expected to boost up remittances impact on Pakistan economy activities in the country and help the government in materializing its dreams of providing the low income groups with the low cost housing facility.

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The report also shows that the remittances have been around $2.7 billion on average during the last six months and the inflow has consistently been more than $ 2 billion for the last 15 months. The highest inflow was seen from Saudi Arabia despite a more than 5 percent decline compared to last year's statistics. There has also been a significant increase in remittances from Europe and the USA in the first two months of the ongoing fiscal year. The inflow from the United Kingdom and the United Arab Emirates also rose by 7 percent and 5 percent respectively. However, the percentage increase in remittances was highest from European Union countries that rose by 50 percent and that of USA by almost 30 percent, reported the State Bank of Pakistan

An increasing trend in foreign remittances will have a positive impact on the economic activities in the country. If the ongoing positive improvement in remittances inflow keeps going, the government of Pakistan will be in a better position to minimize the current account deficit and improve its balance of payment. The soaring inflows will also help the government in realizing the vision of the Prime Minister to provide the most depressed and dejected segment of the society with the facility of low cost houses. The may be in a position to release heavy amounts and funds for the long-awaited low cost housing.