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Agencies
Islamabad
Pakistan recorded 6.4 percent increase in remittances that hit an all-time high mark of $23.12 billion during the financial year 2019-20, the latest data shows.
Analysts and experts said a steady growth in remittances to Pakistan will continue despite the worldwide economic slowdown and overseas Pakistanis may send $25 billion in the present fiscal year of 2020-21.
They further said higher remittance inflows will help provide cushion to the economy, which recorded negative 0.4 per cent GDP growth during last financial year 2019-20 that ended on June 30, 2020. Pakistan envisaged one per cent economic growth for the current fiscal year.
State Bank of Pakistan, the central bank, said workers’ remittances rose by 50.7 per cent during June 2020 to reach a record high of $2.466 billion compared with $1.636 billion in the same month last year.
The central bank said inflow of workers’ remittances during March-June 2020 pandemic period increased 7.8 per cent compared with the corresponding period of 2019.
“Since many of the countries eased lockdown in June, overseas Pakistanis were able to transfer accumulative funds, which they were unable to send earlier. Further, it is also believed that they sent remittances to support extended families and friends due to COVID-19,” said the central bank.
The central bank further said extension of reimbursement of TT charges scheme, which allows to send remittances free of charge to small remitters by reducing threshold from $200 to $100, also played an important role to increase inflows through official channels.
Moreover, the central bank also brought technology-based money transfer firms onboard which helped absorb the shock of lockdowns.
Islamabad
Pakistan recorded 6.4 percent increase in remittances that hit an all-time high mark of $23.12 billion during the financial year 2019-20, the latest data shows.
Analysts and experts said a steady growth in remittances to Pakistan will continue despite the worldwide economic slowdown and overseas Pakistanis may send $25 billion in the present fiscal year of 2020-21.
They further said higher remittance inflows will help provide cushion to the economy, which recorded negative 0.4 per cent GDP growth during last financial year 2019-20 that ended on June 30, 2020. Pakistan envisaged one per cent economic growth for the current fiscal year.
State Bank of Pakistan, the central bank, said workers’ remittances rose by 50.7 per cent during June 2020 to reach a record high of $2.466 billion compared with $1.636 billion in the same month last year.
The central bank said inflow of workers’ remittances during March-June 2020 pandemic period increased 7.8 per cent compared with the corresponding period of 2019.
“Since many of the countries eased lockdown in June, overseas Pakistanis were able to transfer accumulative funds, which they were unable to send earlier. Further, it is also believed that they sent remittances to support extended families and friends due to COVID-19,” said the central bank.
The central bank further said extension of reimbursement of TT charges scheme, which allows to send remittances free of charge to small remitters by reducing threshold from $200 to $100, also played an important role to increase inflows through official channels.
Moreover, the central bank also brought technology-based money transfer firms onboard which helped absorb the shock of lockdowns.
