Pak receives $3.2 billion in remittances in September, 11.3% increase year-on-year

Islamabad, Oct 9 (PTI) Pakistan received USD 3.2 billion in remittance in September, showing an 11.3 per cent increase year-on-year, it emerged on Thursday.

According to the Finance Ministry, the remittances inflow hit USD 9.5 billion in the first quarter of the current fiscal year as compared to USD 8.8 billion during the corresponding period last year.

It further said that the “remittances are a lifeline for households and a cushion for our external account”.

The uptick was largely driven by a 2.6 per cent rise in remittances from Gulf Cooperation Countries, which bolstered overall inflows during the month. In contrast, remittances from the UK slipped by 1.9 per cent month-on-month.

In August, Pakistan received USD 3.14 billion in workers’ remittances, which was 2.4 per cent lower than July inflows of USD 3.21 billion.

The remittances grew seven per cent year-on-year in August, but inflows from key corridors declined, raising concerns about sustainability despite overall growth, according to the State Bank of Pakistan (SBP).

Pakistan is heavily dependent on remittances which help to replenish the depleting foreign exchange reserves.

The country received more than USD 38 billion in remittances last year and hoped to get even more during the current year. PTI SH GSP GSP