KARACHI: Workers’ remittances in the first two months of current fiscal year increased by 31 per cent to $4.863 billion compared to $3.712bn in the same period last fiscal year, data released by the State Bank of Pakistan (SBP) showed on Monday.

“Overseas Pakistanis sent $2.95bn in remittances in August 2020 — 24.4pc higher than August last year — in addition to the record $2.768bn in July 2020. For the first two months of this fiscal year, our remittances are up 31pc over the same period last year. Alhamdulillah,” tweeted Prime Minister Imran Khan.

Meanwhile, month-on-month inflows in August declined by 24pc to $2.095bn compared to record remittances seen in July.

The SBP said lower inflows in August compared to the record $2.768bn received in July mainly reflected the usual seasonal decline in the post Eid-al-Adha period.

24.4pc jump from August last year, but 24pc fall from July

The inflows are against the predictions made by World Bank and Fitch Ratings agency which had anticipated a sharp downturn in inflows.

Efforts under the Pakistan Remittances Initiative (PRI) and the gradual re-opening of businesses in major host countries such as Middle East, Europe and United States contributed to the overall increase.

The data showed inflows in August remained above $2bn mark for the third consecutive month in a row.

The SBP said remittances from all important destinations showed significant jump in July-August. Highest inflows came from Saudi Arabia at $1.414bn, recording an increase of 36pc during the period under review.

Meanwhile, the highest increase was noted from UK as inflows jumped by 75pc to $696 million compared to $397.6m in the same period last fiscal year.

Remittances from US also jumped by a massive 66.6pc to $452m compared to $271m in the last fiscal.

The country received 5pc higher remittances from GCC countries receiving $523m during the period under review. The remittances from EU also noted an increase of 29pc as the inflows rose to $394m. The only decline was noted in inflows from Malaysia, as remittances from the country fell 5.4pc to $39.4m.

“Over the last three months, remittances reached an unprecedented level of $7.3bn, 37.2pc higher than the same period last year,” said the SBP.

Published in Dawn, September 15th, 2020