Remittances in November up 3.27% year-on-year

July-November tally, however, shows a year-on-year decline of 2.45%


Our Correspondent December 09, 2016
PHOTO: AFP

KARACHI: Overseas Pakistanis remitted $1,616 million in November 2016, up a meagre 3.27% compared with the same month of the previous year, according to data released by the State Bank of Pakistan (SBP) Friday.

However, total remittances received by Pakistan during the first five months (Jul-Nov 2016) amounted to $7,874 million, down 2.45% compared with $8,072 million received during the same period of the preceding year.

Overseas workers:Remittances edge up to $1.5b in October

After a shocking fall of over 20% in the month of July 2016, the flow of remittances into the country has remained relatively stable. Moreover, the months of October and November 2016 have shown gradual increase in remittances. Pakistan received $1.5 billion in October 2016, slightly up by 1.2% compared to October 2015.

Like many other developing countries, Pakistan's remittances have come under pressure due to a global economic slowdown triggered by low oil prices that have forced crude-dependent economies to cut down on spending.

DESIGN: NABEEL AHMED

 

Remittances play a major role in stabilising the country's external sector, as they make up almost half the import bill and cover deficit in the trade of goods account.

Pakistan received remittances amounting to $19.9 billion in 2015-16, up 6.4% from the previous year.

Declining exports and a gradual slowdown in remittances are major challenges for economic managers of the country. However, SBP Governor Ashraf Mehmood Wathra is confident that the country faces no immediate threat from the slowdown in remittances and it is in a much better position to repay debts in the next four to five years.

Following remittances, Pakistan's exports also fall

The country wise details for the month of November 2016 show that inflows from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and EU countries amounted to $ 465.19 million, $362.71 million, $193.98 million, $192.8 million, $193.12 million and $37.03 million respectively compared with the inflow of $488.29 million, $350.84 million, $192.39 million, $191 million, $191.46 million and $31.64 million respectively in November 2015.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during November 2016 amounted to $171.60 million together as against $119.57 million received in November 2015.

Published in The Express Tribune, December 10th, 2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ