Remittance inflows from Pakistanis living abroad reached a seven-month high of $2.53 billion in March, modestly enhancing the country’s ability to send money outside on schedule.
The inflows jumped 27.4% to $2.53 billion in March, according to a report released on Monday by the State Bank of Pakistan (SBP). To help their family members deal with the historically high food expenses during the holy month of Ramadan, Pakistanis who were not residents contributed more money to them.
The considerable fall of the rupee versus the US dollar forced abroad Pakistanis to deposit money through legitimate banking channels rather than the illicit hawala-hundi systems.
According to the data, remittances often reach their peak around Ramadan or right before Eid each year. In contrast, the revenue fell 10.7% to $2.53 billion in March from the same month in the prior year.
Remittances declined by 10.8% for the first nine months (July-March) of FY23 compared to the same time previous year, according to the central bank, with a total inflow of $20.5 billion.
In March, Saudi Arabia ($563.9 million), the United Arab Emirates ($406.7 million), the United Kingdom ($422 million), and the United States of America ($316 million) were the primary sources of remittances.
The development of foreign exchange reserves is supported by remittances, which constitute a substantial source of foreign funding. The inflows are often used to pay for Pakistan’s trade imbalance. Prior to this, the amount of remittances sent home by Pakistanis living abroad increased by 5% to approximately $2 billion in February.
The money is sent in foreign currency notes by overseas Pakistanis either through legitimate hawala-hundi operators or through formal channels like banks and exchange firms.?