Remittances from overseas Pakistanis register healthy growth

KARACHI: The overseas remittances to Pakistan have jumped 12.5 percent in the first five months of current fiscal year.

Overseas Pakistanis sent $9.028 billion to Pakistan in first five months of the year around one billion dollar above from $8.021 bn in same period last year, the State Bank of Pakistan (SBP) said in a statement.

The figures released by the central bank, on a monthly basis, remittances plunged by 19.6pc to $1.609bn in November, as compared to $2bn earlier in October.

The tightening of illegal money transactions are producing positive results and restoring the confidence of the overseas Pakistanis, as most of the inflows are now coming through banking channels, sources said.

The State Bank recently took strict measures to curb money laundering and illegal transactions of Hundi and Hawala.

According to the central bank data, highest inflows came from Saudi Arabia at $2.152bn during five months of this fiscal year, showing a growth of 2.5pc, while United Arab Emirates remittances increasing 10.6pc to $1.95bn. United States came third with inflows during the period surging by 33.2pc to $1.393bn

Malaysia has also emerged as a new significant destination for remittances to Pakistan. During five months, inflows crossed half a billion dollars from Malaysia for the first time as they soared by 53.3pc to $616m, from $401.78m in same period last year. Meanwhile, remittances from the United Kingdom grew 14.2pc to $1.286bn.

But remittances from Gulf Cooperation Council countries fell by 6.8pc to $876m while those from the European Union edged up 2pc to $265m during this period.

The new government of Prime Minister Imran Khan has shown intention to crack down on illegal transactions of money including remittances, where the open market offers higher returns for dollar or other currencies compared to the banking rates.

The government is also planning incentives for overseas Pakistanis who send remittances.

Moreover, the government is trying to export about 100000 Pakistani workers to Qatar, which has promised to provide them jobs.