KARACHI – The State Bank of Pakistan has reported a significant soar in the workers’ remittance for the month of February. SBP recorded a 24.2% growth in the influx of foreign exchange.
The bank stated that the remittances are spiraling because more and more people are choosing to send money back home through registered and proper channels.
There has been a noticeable increase when compared with the last year’s remittances. Data shows that a leap of $2.266 billion has been observed, unlike the last year when it was $18.7 billion.
SBP stated that policy measures are being taken by the government and the State Bank of Pakistan to encourage influx through formal channels. It also stated that due to the COVID-19 pandemic the medical expenses aggravated, cross border travel restrictions were imposed and altruistic transfers by the Pakistani expatriates helped in accelerating the workers’ remittance. Pakistani diaspora fought the pandemic by traveling less and by sending savings back home.
Experts also predict that events like Eid-ul-Fitr and Ramadan may have contributed to the rise in remittances. It is because on these important occasions overseas Pakistanis send more money to their families back home in order to meet the expenses.
SBP’s data shows that massive amounts of remittances came from four countries which include United Kingdom, United Arab Emirates, United States, and Saudi Arabia.