Daily Times

Remittances sent by overseas Pakistanis stood at $2.20 billion in September, a six-month high, mainly due to operations against illegal exchange markets and reference handi.

According to media reports, the crackdown has forced overseas Pakistanis to send remittances through legal channels, leading to expectations of an improvement in the current account deficit, but remittances remain lower than Experts had expected remittances to be between $2.30 billion and $2.50 billion in September. The State Bank data showed that remittances increased by 5 percent in September compared to August, from $2.09 billion to $2.20 billion. The largest source of remittances was Saudi Arabia, followed by the United Kingdom, the United Arab Emirates, and other countries.

This trend of increasing remittances is expected to continue in the future. However, remittances declined by 11% year-on-year to $2.20 billion from $2.48 billion in September last year. Total remittances during the first quarter of the current fiscal year declined by 20 percent to $6.33 billion from $7.89 billion in the same quarter last year.

Analysts say that the crackdown on illegal exchange markets is the main reason for the increase in remittances. They also predict that remittances will improve further from next month as the crackdown takes full effect. Meanwhile, Remittances from Pakistanis working in four Gulf Cooperation Council (GCC) countries increased on a monthly basis in September. According to the data released by the State Bank of Pakistan, Pakistanis working in Bahrain, Kuwait, Qatar, and Oman sent $248.1 million in remittances to Pakistan in September, up 1.38% from August. In August, Pakistanis working in these countries sent $244.7 million in remittances to Pakistan. In September last year, Pakistanis working in these GCC countries sent $296.7 million in remittances to Pakistan. According to the report, Pakistanis working in Bahrain remitted $33.4 million, Pakistanis working in Kuwait remitted $64.7 million, Pakistanis working in Qatar remitted $70.7 million, and Pakistanis working in Oman remitted $79.2 million in remittances to Pakistan in September.

In the first quarter of the current fiscal year, Pakistanis working in these GCC countries sent a total of $721.1 million in remittances to Pakistan, which is 18.2% less than the same period of the previous fiscal year. Pakistanis working in Bahrain, Kuwait, Qatar, and Oman remitted $881.8 million in remittances to Pakistan in the first quarter of last fiscal year.

The increase in remittances from Pakistanis in GCC countries in September is a positive development for the Pakistani economy, as remittances are a major source of foreign exchange reserves and help to support the Pakistani rupee. The decline in remittances in the first quarter of the current fiscal year is likely due to a number of factors, including the global economic slowdown and the COVID-19 pandemic.