Remittances from Saudi, Gulf countries decline 14.9%

Total worker receipts amount to $1.48b in February, down 6.9%

KARACHI: In a worrying development for the country’s economic managers, overseas Pakistani workers sent $1.48 billion in February 2017, down 6.9% compared with the same month of the previous year, according to data released by the State Bank of Pakistan (SBP) on Friday.

Total remittances in the first eight months (July to February) of fiscal year 2017 have come down by 2.5% to $12.36 billion from $12.68 billion in the same period last year.



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

Pakistan’s remittances, like many other developing countries, have come under pressure due to world economic slowdown mainly because of low crude oil prices. However, the situation in Pakistan is considered more problematic because of pressure on foreign exchange reserves.

Country-wise details for the month of February 2017 show that inflow of remittances from Saudi Arabia - the country that hosts the largest diaspora of Pakistanis (about 2.2 million) in the world - came down to $404.4 million compared with $475 million in February 2016.



According to Saudi media, the Kingdom of Saudi Arabia has deported more than 39,000 Pakistanis in  the last few months. Analysts say job losses due to record low oil prices and growing security concerns are some of the major reasons why the kingdom is fast deporting foreigners.

This can create problems for Pakistan as it may receive low remittances in the coming months.

Money coming from GCC countries (including Bahrain, Kuwait, Qatar and Oman) declined to $168.2 million in February 2017 from $197.6 million in February 2016.

Similarly, remittances from the European Union declined to $31.7 million from $35.4 million.



However, money coming from the United Arab Emirates remained stagnant at $320.24 million in February 2017 from $320.37 million in the same month of the previous year. Remittances from the US decreased to $177.76 million from $182.17 million.

Remittances from the United Kingdom also declined to $170.55 million in February 2017 from $179.65 million in February 2016.

The combined remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during February 2017 increased to $144 million compared with $131.6 million received in February 2016.

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

Published in The Express Tribune, March 11^th, 2017.

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