ZemTV

Pakistan Records $2.5 Billion Foreign Remittances In May 2021, Remittances Exceed $2 Billion For Straight 1 Year


ImagePakistan’s foreign remittances exceeded $2 billion for the 12th consecutive month.

The country recorded almost $2.5 billion of remittances in May 2021, a 29% increase in the current financial year (FY21) as compared to FY20.

This was disclosed by the SBP (State Bak of Pakistan) in a report released on Thursday.

Enjoying the blog? Check these too.

On a month-on-month (MoM) basis, the remittances fell by 39.75% in May 2021 compared to April 2021.

The fall was expected as remittances usually slow down in the post-Eid al-Fitr period.

Also, due to the closure of the businesses one week before Eid this year, there was an unusual front-loading of remittances in April 2021.

Pakistan Records $2.5 Billion Foreign Remittances In May 2021, Remittances Exceed $2 Billion For Straight 1 Year

Nevertheless, the typical post-Eid monthly dip was much more modest this year.

The seasonal decline in May 2021 was less the half of the average decline witnessed during FY16-19.

However, the seasonal decline was the least in FY20, not in FY21. This was due to an unexceptional rise in remittances owing to the easing of COVID-19 lockdowns in the post-Eid period in Gulf Arab states.

On a cumulative basis, the remittances increased to $26.7 billion during July-May FY21.

This amount was 29.4% higher over the same period last year.

From where did the remittances come from in May 2021?

Kingdom of Saudi Arabia (KSA)

Saudi Arabia accounted for almost a quarter of all of the foreign remittances sent to Pakistan.

A whopping amount of $614.1 million was remitted to the South Asian country from the kingdom.

United Arab Emirates (UAE)

The UAE was the source of the second-highest remittances sent to Pakistan.

A total amount of $512.4 million was remitted to the South Asian country from the Arab Gulf state. Out of this, the Emirate of Dubai accounted for remittances worth $411.6 million alone.

This was followed by the Emirate of Abu Dhabi ($91.9 million), the Emirate of Abu Dhabi ($7.7 million), and other emirates ($1.3 million).

The U.K. and the U.S.

The United Kingdom (UK) accounted for $365 million worth of remittances while the United States of America (USA) accounted for $260.9 million worth of remittances.

Other Gulf Cooperation Council (GCC) States

The other GCC states, apart from the KSA and the UAE, became a source of $261.5 million worth of remittances.

Out of this, $88.3 million were remitted from Oman, $72.4 million from Qatar, $65 million from Kuwait, and $35.8 million from Bahrain.

The European Union (EU)

The EU, in total, accounted for $243.6 million worth of remittances.

Out of this, $53.4 million were remitted from Italy, $37.8 million from France, $36.5 million from Germany, $36.3 million from Spain, $27.6 million from Greece, $23.5 million from Belgium, $12.1 million from Ireland, $6.4 million from Denmark, $5.3 million from Sweden, and $4.7 million from the Netherlands.

Other Countries

Around $63.2 million worth of remittances were sent from Canada, $46.6 million from Australia, $16.7 million from Malaysia, $9.1 million from Norway, $5.5 million from Japan, and $3.4 million from Switzerland.

A further $88.6 million worth of remittances was sent from other countries.

What are your views on this? Share with us in the comments below.



Your Header Sidebar area is currently empty. Hurry up and add some widgets.