Foreign remittances grew to $13.302 billion in the first seven months of the current fiscal year FY2019-20 as compared to $12.774 billion in the corresponding period of FY2018-19 as more Pakistanis residing in foreign countries continued to send higher remittances back home and the Financial Action Task Force’s (FATF) strict conditions forced them to utilise legal remittance channels.
Percentage-wise, the growth of 4.13 percent has been recorded during July-January period of 2019-20 whereas a healthy growth of 10.8 percent was observed in the same months of FY19, the State Bank of Pakistan (SBP) reported on Wednesday.
Alone in January, the remittances increased by 9.36 percent to $1,907.32 million as compared to 4.92 percent ($1,744.08 billion) in January FY19, the report added.
Remittances from the U.S. and the UK grew by 10.96 percent and 5.66 percent, respectively and cumulatively accounted for over 32 percent ($4.276 billion) of the total remittances of $13.30 billion in the same period.
Pakistanis in the United States sent $2.224bn during the period under review, exhibiting an increase of 10.96pc versus $2.005bn in same months of FY2018-19.
On the other hand, the growth in remittances from Saudi Arabia and the UAE, were recorded as $3.051 billion and $2.744 billion, respectively. In terms of growth, the remittances from Saudi Arabia and the UAE were 2.69 percent and 1.73 percent, respectively, in FY20 as compared to 1.95 percent and 7.17 percent in FY19.
As is the norm, remittances from Saudi Arabia remained the highest as they edged up 2.69pc during 7MFY20, as compared to $1.95bn in the corresponding period of the last year.
Pakistanis dispatched 12% higher remittances at $1.275 billion from GCC countries (including Bahrain, Kuwait, Qatar and Oman) as compared to $1.222 billion in the same time of the previous year. They sent 8.62pc higher funds from EU countries at $386.46 million compared to $355.78 million in 7MFY19.