Karachi January 14 2022: With $2.5 billion of inflows during December 2021, workers’ remittances continued their strong impetus of remaining above $2 billion since June 2020.
This takes full year 2021 remittances to record high of USD 31 billion compared to USD 26 billion in 2020.
In terms of growth, remittances increased by 2.5% (m/m) and 3.4 %(y/y) in December 2021.
Cumulatively, at $15.8 billion, remittances grew by 11.3% during the first half of FY22 over the same period last year.
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Remittance inflows during December 2021 were mainly sourced from Saudi Arabia ($626.6 million), United Arab Emirates ($453.2 million), United Kingdom ($340.8 million) and United States of America ($248.5 million).
Remittance inflows during 2021 were mainly sourced from Saudi Arabia ($7,746 million), United Arab Emirates ($6,166 million), United Kingdom ($4,337million), European Union ($3,189 million) and United States of America ($3,043 million).
Proactive policy measures 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 Jul-Nov FY22 data of Workers’ Remittances has been revised upward to reflect inflows into Roshan Digital Accounts (RDA) that are related to local consumption (like payment of utility bills, transfer to local PKR account, etc.). Since data on these conversions was not previously available by country, these were reported under ‘other private transfers’ in the balance of payments statistics. The December 2021 data is also compiled accordingly, and this treatment will be followed going forward.
