Pakistan receives $2.7 billion remittances in August
Despite the rise in inflation, Overseas Pakistanis send remittances of over $2.7 billion in the month of August, according to State Bank of Pakistan (SBP).
The State Bank of Pakistan (SBP) reported that the country received $2.724 billion in August, an increase of about 7.9 percent on a month-on-month basis.
However, this amount was only 1.5% higher than the $2.6 billion in August 2021.
Also, remittances from overseas workers in July-August declined by 3.2 percent to $5.247 billion from $5.418 billion a year ago.
In addition, remittances sent by overseas employees in July-August decreased by 3.2% to $5.247 billion from $5.418 billion a year ago.
Pakistan received record remittances of over $31 billion in fiscal year 2022, up 6.1 percent from last year.
However, foreign direct investment (FDI) declined by 43.3% in the first month of this fiscal year.
Compared to $103.8 million in July 2020, the country has received only $5.89 million in FDI.
The country is in dire need of remittances this fiscal year as catastrophic floods have devastated agriculture across the country, particularly in Sindh and Balochistan, which could affect textile exports due to damage to cotton.
In addition, the country’s exports in FY 2022 were unprecedented with record remittances, but the current account deficit remained high.
Almost all major remittance destinations of overseas Pakistanis noted a decline in the first two months of 2022-23.
The highest remittances were sent by Saudi Arabia, which recorded a 7.5 percent decline in July-August to $1.272 billion.