Workers' remittances maintain above $2 billion level for 13th month in June

KARACHI: The finance ministry has Thursday released the Monthly Economic Update & Outlook report wherein noting the upward trend in economic revival and consistent activity with increased remittances and tax revenues, ARY News reported.

The monthly economic report published in July said there is 27 per cent surge in remittances from July last year to June with $29.4 billion pouring in the country under this head.

During financial year 2021, the report said, exports increased by 18.3 percent to $25.3 billion. Last year the total exports stood $21.4 billion.

The exports posted growth compared with last year because of slow down in industries due to Covid lockdown.

Major exported commodities which performed well according to the report include knitwear with 36.6 pc growth; readymade garments 18.8 pc; bed wear 28.9 pc; towel 31.8 pc; carpet, rugs and mats 36.9 pc, leather manufactured 18.7 pc.

On the other hand, exports in fish and fish preparations posted 1.9 pc growth.
The increase in overall exports is contributed by the growth in exports of value-added
sectors.

Imports in FY2021 increased to $56.4 billion, compared to $44.6 billion last year, thus posting 26.6 percent growth.

The report said among the main commodities imported were petroleum products, palm oil, iron and steel, liquefied natural gas, plastic materials, mobile phones, electrical machinery and apparatus, power generating machinery and raw cotton.

“Higher imports of these commodities indicate improvement of related sectors as well,” it added.

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The remittances in FY2021 showed a rise to $29.4 billion, marking a 27pc increase since the past year. $23.1 billion was the total remittances last year. This has marked “fastest rate of expansion since FY2003”.

On the year-on-year basis, remittances increased by 8.7 pc in June 2021, recording $2.7 billion. June last year mustered $2.5 billion.

Separately on MoM, remittances reached $2.7 billion in June 2021. $2.5 billion were recorded
in May 2021.

Workers’ remittances continued their unprecedented streak of above $2 billion for the 13th consecutive month in June 2021.