Remittances to Pakistan from foreign countries declined by 12.3% in September 2022 on an annual basis to $2.4 billion, owing to a high base effect and post travel recovery. -Covid.
According to data released by the State Bank of Pakistan (SBP) on Tuesday, remittances stood at $2.78 billion in the same month last year.
Talk to company registrar Tahir Abbas, head of research at Arif Habib Limited (AHL), said the drop in remittances is in line with the current trend.
“We expect remittances to be flat or decline 1.5-2% in FY23 as there won’t be much growth due to a base effect. high,” he added.
However, remittances are expected to improve in October, the analyst said.
Tahir pointed out that the resumption of international travel also has an impact on remittances.
“Additionally, the hawala and hundi element is also present, but after the recent government measures against this, the remittance figure is expected to improve in the month of October,” he added.
Echoing his view, Samiullah Tariq, head of research at Pak-Kuwait Investment Company, told Business Recorder that the decline in remittances was seen following the restoration of travel after a near disruption. from 2 years to Covid.
“Also, inflation in foreign countries is at record highs, so disposable incomes have dropped significantly,” he said. “Because of this, people can send less money home.”
“Remittances declined from formal channels due to the wide spread between the interbank rate and the open market rate, which reached Rs10-12,” he said. “As the gap has narrowed now, remittances from formal channels have now increased.”
Month-to-month, remittances fell 10.5% to $2.72 billion in August 2022. On a cumulative basis, the inflow of remittances during the July-September quarter of FY2022-23 was $7.7 billion, which was 6.3% lower than $8.2 billion in the same period of the Previous exercice.
Overseas Pakistanis in Saudi Arabia sent the largest amount in September 2022, as they sent $616.6 million during the month. This was 14.3% less than the $719.5 million sent by expats in September 2021.
Remittances from the United Arab Emirates amounted to $474.3 million during the month, showing a 9.7% decline from $525.3 million in the same month last year.
Admissions from the UK fell 19% from $380.3 million in September 2021 to $307.8 million in September 2022.
Remittances from the United States increased by 7.2% to $268.1 million in September 2022. Overseas Pakistanis in the United States sent $250.1 million in the same month Last year.