Remittances from EU, UK show strong growth

Eidul Azha cited as major factor behind 27% month-on-month jump in remittances

KARACHI: Overseas Pakistani workers sent home $1.954 billion in August 2017, up 27% from $1.542 billion the country received in July, according to data released by the State Bank of Pakistan (SBP) on Tuesday.

Eidul Azha, which fell in the first week of September, was most likely the primary reason behind the surge in remittances in August because a large number of overseas Pakistanis sent money back home to their families for buying sacrificial animals.

On a year-on-year basis, the flow of remittances in August 2017 stood 11% higher compared to the same month in the preceding year, when inflows totalled $1.76 billion.



This is the second month in a row when remittances have shown a significant growth.

In July 2017, they had jumped 16.1% to $1.542 billion compared with $1.328 billion in the corresponding month of 2016.

Earlier, owing to a global economic slowdown, countries that had traditionally depended on remittances, experienced a decline in their numbers and Pakistan was no exception.

Remittances to Pakistan from Gulf countries, which historically accounted for the largest share annually, dropped drastically due to a sharp fall in crude oil prices that hurt the region’s economies.



Resultantly, thousands of Pakistanis lost their jobs over the past two years or so, especially in Saudi Arabia - the largest source of remittances for Pakistan contributing over 25% to total receipts.

Money coming from Saudi Arabia stood almost flat at $511 million in August 2017 compared with $507 million in the same month of 2016.

Remittances from the UAE totalled $440 million, up 10% from $401 million in August 2016.

Overseas Pakistanis in the US sent home $260 million in August 2017, up 16% from $224 million in the same month of previous year. Remittances from the UK stood at $249 million, up 29% from $193 million.

Pakistanis living in Gulf Cooperation Council (GCC) countries, including Bahrain, Kuwait, Qatar and Oman, sent $230 million in August 2017, up 3% compared with $223 million in August 2016.

The biggest increase in remittances came from European Union (EU) countries. They were recorded at $63 million, up 43% from $44 million in the same month of 2016.



Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries amounted to $200 million, up 18% compared with $170 million in August 2016.

Despite the global economic slowdown, remittances from EU countries are continuously increasing which augurs well for Pakistan’s economy. In fiscal year 2016-17, Pakistan received $483 million from EU states, up 15.5% compared with $418 million in FY16.

Pakistan received overall remittances of $19.3 billion in FY17, down 3% compared with $19.91 billion in FY16.

Published in The Express Tribune, September 13^th, 2017.

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