According to the expectations, the flow of workers’ remittances sent by foreign Pakistani showed an increase of 8%, to $2.72 billion in August, the State Bank of Pakistan (SBP) reported on Tuesday.
Remittance inflows in the month of August mostly came from Saudi Arabia with $691.8 million, the United Arab Emirates sent $531.4 million, the United Kingdom remitted $369.7 million, and the United States with $294.4 million, the SBP stated.
The end of the holiday season also helped to grow the inflows in August.
Remittances had declined by 9%, to $2.52 billion, on a month-on-month basis in July because of a lower number of working days in the month.
The financial markets in Pakistan and in the Gulf states had remained closed for about half of the month on account of the Eidul Azha holidays, Hajj holidays in Saudi Arabia, and the closure of businesses because of heavy monsoon rainfall in Pakistan.
Read more: IT export remittances decline by 15% to $199 million in July
Meanwhile, inflows are also up by 1.5% in August, as compared to $2.68 billion in the corresponding month of the last year, the central bank added.
Cumulatively, during the first two months (July and August) of the ongoing fiscal year, the remittances were reported at $5.24 billion. They are 3% lower as compared to the $5.42 billion during the corresponding period last year.
A huge number of remittances come from the Gulf states where most Pakistani expatriates work, comprising Saudi Arabia and the UAE.
The central bank further said that the inflows should remain steady at about $2.70 billion as Gulf economies remain healthy. Increased prices of oil prices kept the Arab economies robust, as most of them make and export oil.
Though, the recession in Europe may influence the remittance inflow to Pakistan.
Earlier this year in July, the overseas Pakistani workers’ remittances increased by 6.1 percent in the fiscal year (Jul-Jun) 2021-22 to $31.2 billion as compared to the inflows of $29.45 billion in the corresponding period of the last year.
