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Remittances to Pakistan rise to record $7.1 billion in 1st FY21 quarter

quarter Remittances

Overseas Pakistanis sent record $7.1 billion remittances in the first quarter of the fiscal year 2021 (July to September), the State Bank reported on Monday. It is a 31.1% increase in the worker’s remittances than in the same period last year.

On Monday, Prime Minister Imran Khan announced that remittances sent by overseas Pakistanis have remained above the $2 billion mark for the fourth consecutive month, he termed it a “good news” for the economy.

Read more: Remittances hit all-time high of $23.12 billion in FY20

He took to twitter this morning and wrote, “Despite Covid more good news for our economy. Alhamdulillah, remittances from our hardworking overseas Pakistanis rose to $2.3 bn in Sept 2020, 31% higher than last Sept & 9% higher than August 2020. This marks the 4th consecutive month that remittances have remained above $2 bn.”

According to the State Bank of Pakistan (SBP) “cumulatively, workers’ remittances rose to a record $7.1 billion” in the ongoing fiscal year’s first quarter whereas, the remittances for the first quarter were $5.5 billion in the last fiscal year. 

SBP tweeted, “In September, workers’ remittances continued their strong performance, remaining above $2 billion for the fourth consecutive month. They increased to $2.3 billion, 31.2% higher than last September, and 9% higher than in August. Details: https://sbp.org.pk/press/2020/Pr-12-Oct-20.pdf.”

It further wrote, “Cumulatively, workers’ remittances rose to a record $7.1 billion in Q1-FY21, 31.1 % higher than the $ 5.5 billion registered in Q1-FY20.”

“This sustained strong growth in remittances is driven by continued efforts under #Pakistan Remittances Initiative #PRI to formalize remittances, improvements in Pak’s FX market structure&gradual re-opening of businesses in major host destinations such as the Middle East, Europe &US.”

Meanwhile, the central bank said that the Pakistani government, under the initiative was trying to “formalize remittances” as well as it wanted to improve the structure of the forex markets of the country. It also added that the “gradual re-opening of businesses in major host destinations, such as the Middle East, Europe, and the US” has also helped in boosting the remittances.

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