SBP reports $2.5 billion remittances in March against $1.98 billion in Feb-2023
ISLAMABAD: The State Bank of Pakistan today reported the inflows of workers’ remittances at US$2.5 billion during Mar 23.
In terms of growth, during Mar 23, remittances increased by 27.4 percent on m/m when compared with the inflows in February this year. Remittances, nonetheless, decreased by 10.7 percent on y/y basis, when measured with March 2022 when Pakistan received $2.8 billion.
In first nine months of the ongoing fiscal year, Pakistan has received US$ 20.5 billion in remittances, 10.8 percent less than the corresponding period of the previous fiscal year.
The inflow of workers’ remittances was 27% higher compared to the prior month of February; however, it was 11% lower compared to March 2022, the State Bank of Pakistan (SBP) data showed on Monday.
According to the SBP, the remittances inflows during March 23 were mainly sourced from Saudi Arabia ($563.9 million), United Arab Emirates ($406.7 million), United Kingdom ($422 million) and United States of America ($316 million).
The notable upsurge in remittances can primarily be attributed to the month of Ramadan and the upcoming Eid festivities, during which the Pakistani diaspora has demonstrated their affection for their loved ones by sending money back home.
This trend has been a significant contributor to the overall increase in remittance inflows to Pakistan.
However, on yearly basis, the remittances have dropped by 10.6% YoY as compared to $2.83bn in March 2022.
Despite the decline in the yearly comparison, the increase in remittances for the month of March is a positive sign for the economy. The inflows mainly came from Saudi Arabia, the United Arab Emirates, the United Kingdom, and the United States of America, with Saudi Arabia being the largest contributor at $563.6 million.
