The inflows of workers’ remittances sent home by overseas Pakistanis improved by 5% to US$2 billion in February ahead of the holy month of Ramazan and the festival of Eid.
The inflows partially bounced back in February from a 30-month low of US$1.92 billion in the month of January 2023. However, inflows remained comparatively less as a section of non-resident Pakistanis continued to send funds to their family members through illegal channels due to the availability of a better rupee-dollar exchange rate in the black currency market.
The State Bank of Pakistan (SBP) is reporting today (March 13) that the inflows of workers’ remittances were recorded at US$2 billion during February 2023. Remittances have increased 4.9% in February 2023 compared to January 2023.
However, inflows have reduced by a notable 9.5% in the month compared to the same month last year, according to the SBP. With a cumulative inflow of $18 billion during the first eight months (Jul-Feb) of the current fiscal year 2023, remittances decreased by 10.8% compared to the same period last year.
According to the SBP, remittances during February 2023 mainly originated from Saudi Arabia (US$454.6 million), United Arab Emirates (US$324.0 million), United Kingdom (US$317.0 million) and the United States of America (US$219.4 million).
Overseas Pakistanis usually send higher funds ahead of the fasting month of Ramazan to support their family members to cope with higher inflation and to celebrate the Eid festival.
Ramazan is expected to start in late March and Eidul Fitr is expected around late April.