Pakistan has seen the fastest remittance growth in two decades, with $29.4 billion in remittances.

KARACHI: Pakistan’s remittances from abroad grew at a nearly two-decade high pace in the previous fiscal year of 2020-21, providing significant assistance to the external sector, according to statistics released by the central bank on Tuesday.

“Despite the tough global economic conditions in the previous year, these [remittances] helped strengthen the country’s external sector position,” the State Bank of Pakistan (SBP) stated in a statement.

According to the SBP, remittances totaled $29.4 billion in the fiscal year that concluded in June. In the preceding fiscal year, remittances totaled $23.13 billion.

Inflows increased by 27% over the previous year, the highest pace of growth since FY2003.

Workers’ remittances totaled $2.7 billion in June, up 9% from the previous month. Month over month, these inflows rose by 8%.

The SBP said, “Seasonal pre-Eid linked inflows contributed to significantly enhance remittances levels throughout June.”

In June, remittances surpassed $2 billion for the 13th month in a row, setting a new high.

Remittances fared surprisingly well for practically the whole fiscal year of FY2021, according to analysts.
The increase in remittances in FY21 was a major accomplishment for the government, and it helped bridge the external account gap in a difficult year for COVID, according to Saad Hashemy, executive director at BMA Capital.