This year in the second quarter of the fiscal year Pakistan sees a surge in foreign remittances as remittances grew by 24.4% for the month of August 2020 compared with August of last year.
Overseas Pakistanis sent $2,095 million in remittances in Aug 2020 — 24.4% higher than Aug. last year — in addition to the record $2,768 million in July 2020. For the first two months of this fiscal year our remittances are up 31% over the same period last year. Alhamdulillah
— Imran Khan (@ImranKhanPTI) September 14, 2020
Prime Minister Imran Khan took to twitter on Monday with the positive news saying, “overseas Pakistanis sent $2,095 million in remittances in August 2020 – 24.4% higher than August last year – in addition to the record $2,768 million in July 2020. For the first two months of this fiscal year (FY21), our remittances are up 31% over the same period of last year.”
Pakistan’s foreign remittances surging
With remittances in July topping the charts and being the highest amount of remittances ever recorded in a month for Pakistan, the country sees a spike of 31% in foreign remittances for the first two months of the fiscal year compared with last year. Although overall remittances have contracted by 24% when compared to the record high in July, they are still over the $2 bn mark.
More good news for Pak economy. Remittances from overseas Pakistanis reached $2,768 mn in July 2020, highest ever amount in one month in the history of Pakistan. This is 12.2% increase over June 2020 and 36.5% increase over July 2019.
— Imran Khan (@ImranKhanPTI) August 17, 2020
“Historically, remittances peak in the months around Eid festivals every year as happened in June and July ahead of Eidul Azha. And they take a dip in forthcoming months (as happened in August),” BMA Capital Executive Director Saad Hashmi said while talking to The Express Tribune.
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Another factor for the surge in remittances can also be linked to lower spending on the annual Hajj pilgrimage because of the downsized Hajj of 2020 amid the coronavirus pandemic.
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Both the government and State Bank have taken measures to promote the inflow of foreign remittances which are expected to increase next year. “Pakistan is expected to receive $24-25 billion in FY21,” said Hashmi. A visibly positive sign for next year is that remittances have increased considerably from the US and UK by 51% and 67% respectively.
GVS News Desk