In a major upset for Pakistan, the country is facing a decline in remittances. Since the PML-N government took control, remittances have fallen.
According to the data by the State Bank of Pakistan (SBP), on a year-on-year basis, the remittances decreased from $2.5 billion in May 2021 to $2.3 billion in the same period of the current fiscal year. On a month-on-month basis, the inflows of remittances also declined from $3.1 billion in April 2022 to $2.3 billion in April 2022.
The SBP attributed the decrease in remittances to the usual seasonal post-Eid decline and associated long holidays. Meanwhile, PTI thinks it is because of the new government. Overseas Pakistanis are known to strongly support the former Prime Minister Imran Khan. Therefore, they are rejecting the incumbent government by not sending remittances.
Read more: Overseas Pakistanis protest against “regime change”
Moreover, PTI leaders also believe that remittances dropped because the incumbent government is not allowing Overseas Pakistanis to vote in the elections. Last month, the National Assembly passed the Elections (Amendment) Bill 2022, which seeks to remove the use of electronic voting machines (EVMs) in general elections as well as disallows overseas Pakistanis from voting electronically.
So remittances just dropped in the first full month of the imported govt.
Overseas voting reversal, anyone?@Asad_Umar@shaukat_tarin@Hammad_Azhar@MuzzammilAslam3 https://t.co/5PkWTCN9s2— Taimur Khan Jhagra (@Jhagra) June 10, 2022
“Remittance declined to only $2.3 mn in May, witnessed a 25% dip from last. People have stopped sending money to Pakistan under this imported regime,” Muzzammil Aslam tweeted.
Remittances declined to only $2.3mn in May, witnessed 25% dip from last last. People have stopped sending money to Pakistan under this imported regime
— Muzzammil Aslam (@MuzzammilAslam3) June 10, 2022
Workers’ remittances up 6.3%
On the other hand, the overseas Pakistani workers’ remittances grew by 6.3 percent in 11 months (Jul-May) of the current fiscal year to US$28.4 billion against the inflows of $26.7 billion in the same period of the previous year.
At $2.3bn in May, workers’ remittances have continued to remain above the $2bn mark since June 2020. Remittances’ inflows during May 2022 were mainly sourced from Saudi Arabia ($541.9 million), the United Arab Emirates ($435 million), the United Kingdom ($354 million), and the United States of America ($232.9 million).
Read more: Remittances reach all time high, thanks to overseas Pakistanis
The highest remittances of about $7.059 billion were received from Saudi Arabia during the July-May period. Inflows from the UK and US grew 8.5pc and 18.5pc to $4.025bn and $2.8bn, respectively.