Pakistan’s August remittances hit $2.66 billion

Workers’ remittances continued their strong trend, reaching $2.66 billion in August 2021, State Bank of Pakistan (SBP) reported on Friday. This is the sixth consecutive month when inflows recorded around $2.7 billion on average, and the fifteen consecutive month they have been above $2 billion.

In terms of growth, remittances increased by 26.8 per cent on year-on-year basis in August, which is a decade high growth rate for that month.

 On month-on-month basis, inflows were marginally lower than in July, reflecting the usual post-Eid slowdown. Nevertheless, this seasonal decline was far less this year compared to historical trends, the statement said adding that cumulatively, at $5.36 billion, remittances grew by 10.4% during the first two month of this year over the same period last year.

Remittance inflows during August 2021 were mainly sourced from Saudi Arabia ($694 million), United Arab Emirates ($512 million), United Kingdom ($353 million) and the United States ($279 million).

Proactive policy measures by the government and SBP to incentivize the use of formal channels, curtailed cross-border travel in the face of COVID-19, altruistic transfers to Pakistan amid the pandemic, and orderly foreign exchange market conditions have positively contributed towards the sustained improvement in remittance inflows since last year.

The government of Pakistan recently approved the National Remittance Loyalty Programme (NRLP) envisaging incentives for overseas Pakistanis to sustain a positive trajectory of remittances.

“The NRLP will offer incentives/rewards to overseas Pakistanis for sending remittances to Pakistan based on point’s accumulation structure,” said a summary presented by Finance Secretary Yousaf Khan to the Economic Coordination Committee (ECC) on the basis of a proposal already approved by the prime minister on July 2, 2021. The scheme would cost the exchequer about Rs13.1 billion this year.