KARACHI: Overseas workers’ remittances in Pakistan have seen a significant surge, registering a remarkable 27.4% increase on a month-on-month basis, reaching $2.5 billion in March 2023.
According to data provided by State Bank of Pakistan (SBP), this surge marks the highest recorded inflow of remittances since August 2022, and is primarily attributed to the Ramadan factor. However, on a yearly basis, the inflow of remittances has witnessed a decline of 11%, with the same month in the previous year recording $2.83 billion.
Workers’ remittances recorded an inflow of US$2.5 billion during Mar 23, indicating an increase of 27.4% over Feb 23. For details see https://t.co/rPOvn9Dr8N https://t.co/7XBd4uOcHC pic.twitter.com/Czrv9jaNsO
— SBP (@StateBank_Pak) April 10, 2023
Cumulatively, the inflow of remittances during the July to March period of the fiscal year 2022-23 stood at $20.527 billion, depicting a decline of nearly $2.5 billion, which is 10.8% lower than the same period of the previous fiscal year. The experts suggest that the increase in remittances can be linked to the seasonal rise due to the ongoing month of Ramadan, where a lot of funds are remitted on account of Zakat and other charities, leading to the surge in remittances.
Additionally, experts have also stated that on account of this surge in remittances, the current account deficit for March is likely to be negligible, and there is also a strong possibility of a current account surplus this month.
Experts say while the surge in remittances provides temporary relief, the long-term decline in remittances remains a concern for Pakistan’s economy.
