Workers Remittances grow 27% to $2.66 Billion in August 2021

miafridi

Prime Minister (20k+ posts)
pkistani-money.jpg


KARACHI: Workers’ remittances maintained their strong momentum for the fifteen consecutive month in August as Pakistanis working abroad sent home $2.66 billion last month.

The State Bank of Pakistan (SBP) said, “this is the sixth consecutive month when inflows recorded [at] around $2.7 billion on average, and the fifteen consecutive month they have been above $2 billion”.

In terms of growth, August witnessed an increase of 26.8 per cent in remittances on a year-on-year basis, a decade high growth rate for the month.

However, the SBP said on a month-on-month basis, inflows were “marginally lower than in July, reflecting the usual post‐Eid slowdown”. Nevertheless, it added this seasonal decline was far less this year compared to historical trends.

Cumulatively, Pakistan received $5.36 billion worth of remittances during the first two months of this fiscal year, showing growth of 10.4pc over the same period last year.

The data showed the inflow from Saudi Arabia clocked in at $694 million, the United Arab Emirates (UAE) $512 million, the United Kingdom (UK) $353 million and the United States (US) $279 million.

“Proactive policy measures by the Government and SBP to incentivize the use of formal channels, curtailed cross‐border travel in the face of COVID‐19, altruistic transfers to Pakistan amid the pandemic, and orderly foreign exchange market conditions have positively contributed towards the sustained improvement in remittance inflows since last year,” the central bank said.

https://arynews.tv/workers-remittances-grow-26-8pc-august-sbp/
 

arafay

Chief Minister (5k+ posts)
Last FY
1) exports were $31.3 billion ($25.3 billion export of goods and $6 billion of services sector)
2) remittances were $29.4 billion
Total = $60.7 billion

Assuming a modest 8-10% growth we can cross $65 billion easily. This means we can maintain an import bill of $70 without dipping much into our reserves that currently stand at $27 billion.

Conclusion: do not panic on $6 billion per month imports.
 

miafridi

Prime Minister (20k+ posts)
Last FY
1) exports were $31.3 billion ($25.3 billion export of goods and $6 billion of services sector)
2) remittances were $29.4 billion
Total = $60.7 billion

Assuming a modest 8-10% growth we can cross $65 billion easily. This means we can maintain an import bill of $70 without dipping much into our reserves that currently stand at $27 billion.

Conclusion: do not panic on $6 billion per month imports.

Don't forget that Higher imports results in higher tax collection as well just for example FBR has collected 850 billion in the first 2 months of this fiscal year, which is 149 billion or Almost $1 billion higher revenue collection than the target(mostly on the back of imports). So higher imports are not a lose lose situation either. But we still have to have a balance between the stats, and focus on imports which are beneficial in the long run rather than just being a consumer of goods from the outside.
 

FahadBhatti

Chief Minister (5k+ posts)
Last FY
1) exports were $31.3 billion ($25.3 billion export of goods and $6 billion of services sector)
2) remittances were $29.4 billion
Total = $60.7 billion

Assuming a modest 8-10% growth we can cross $65 billion easily. This means we can maintain an import bill of $70 without dipping much into our reserves that currently stand at $27 billion.

Conclusion: do not panic on $6 billion per month imports.
We are returning 13 billion dollars on average per year as well.
 

arafay

Chief Minister (5k+ posts)
We are returning 13 billion dollars on average per year as well.

We are also borrowing money average $2 billion/yr from IMF/World bank. Plus we get average $2 billion Foreign direct investment. In addition, we can issue international bonds of $2-3 billion. There is also a deferred oil facility arranged with UAE/Saudi - oil being the major import of Pakistan. This leaves a gap of $6 billion (max $10 billion) between total dollar inflows and outflows which can easily by covered by the state bank reserves.