KARACHI: Remittances transferred by overseas Pakistani workers fell6.6 percent on a month-on-month basis in November but grew by nearly 10pc in the first five months of the current financial time.
The State Bank of Pakistan (SBP) data issued on Monday showed that the flux of remittances was$2.35 bn in November against$2.517 bn in October. The country had entered$2.7 bn remittances in September.
Still, during July-November the remittances increased by9.7 pc to$12.9 bn against$11.7 bn in the same period of FY21. The SBP noted that workers’ remittances continued their strong band of remaining over$ 2bn since June 2020.
Due to the tremendous pressure of rising import bills the country has been facing a tough time from the lenders while the nonstop deprecation of the rupee against the US bone is a reflection of the weak position of the frugality, particularly on the external front.
The goods import bill on average per month is about$6.5 bn in FY22 indicating a delicate situation for the country to meet the adding gap between inrushes and exoduses. The country is awaiting to admit about$ 1bn from the IMF while planning to raise$ 1bn-$1.5 bn through the allocation of Sukuk (Islamic bonds).
Read: Remittances hit $10.6bn in July-October
Still, the widening trade gap could further increase the current account deficit (CAD) which has been a burning issue for the government. It succeeded to bring down the CAD from$ 20bn in 2018 to$1.9 bn in FY21 but formerly again it has started crawling up reaching$ 5bn in the first four-month (July-October) of 2021-22.
The details of the remittances showed that the loftiest flux was from Saudi Arabia at$3.271 bn in the July-November period with a negative growth of1.8 pc compared to$3.33 bn in the same period of last financial time.
Saudi Arabia also placed$ 3bn in the account of State Bank lately to strengthen the foreign exchange reserves that have been declining since July.
Unexpectedly, the inrushes from the European Union countries jumped by 41pc to$1.442 bn in 5MFY22 against$1.02 bn in the same period of last time.
Read: Pakistan, Saudi Arabia sign deals on workers’ recruitment, skills
Remittances from the United Arab Emirates rose just0.4 pc to$2.453 bn in the period under review. The inrushes from the United Kingdom and the United States were$1.768 bn and$1.3 bn, registering a growth of 14pc and 30pc independently.
Overseas Pakistani workers from the Gulf Cooperation Council countries remitted$1.452 bn during the July-November period, posting a growth of8.5 pc over the same period last time.
Some judges believe the adding flux of remittances is normal because of tight rules and strict alerts against deals through illegal channels. Still, they also believe the advanced import bill was also normal because smuggling has been controlled so the importers are billing officially.
