Remittances hit record high $2.76 billion in July: SBP

KARACHI: Remittances from overseas Pakistanis rose to $2,768 million in July this year, the highest ever level of remittances in a single month in Pakistan.

According to State Bank of Pakistan (SBP) report, the remittances showed an increase of $740mn (or 36.5pc) over last July and an increase of $302mn (or 12.2pc) over June 2020.

The growth rate in remittances compared to the same month in the previous year is around twice as high as the Eid-ul-Adha related seasonality typically experienced over the last decade, the SBP said in a statement.

2/4 July’s strong yearly growth rate is around twice as high as the Eid-ul-Adha related seasonality typically experienced over the last decade, suggesting other factors are at play.

— SBP (@StateBank_Pak) August 17, 2020

Since the global outbreak of coronavirus in February 2020, remittances have increased by 14.3 percent compared to the same period last year.

SBP further pointed out that several factors have likely supported the growth in remittances to date, including orderly exchange rate conditions and policy steps taken by the State Bank and the federal government under the Pakistan Remittance Initiative.

These steps include reducing the threshold for eligible transactions from USD 200 to USD 100 under the Reimbursement of Telegraphic Transfer (TT) Charges Scheme, an increased push towards adoption of digital channels, and targeted marketing campaigns to promote formal channels for sending remittances, said SBP.

4/4 Given the impact of Covid-19 globally, this increase in workers’ remittances is encouraging. Increased incentives from the State Bank and Government of Pakistan to send remittances through official channels has supported remittances growth.

— SBP (@StateBank_Pak) August 17, 2020

Earlier, Prime Minister Imran Khan has termed record increase in remittances as good news for the country’s economy.

Remittances hit record high of $2.76bn in July: SBP