Pakistan’s remittances clock in at just over $2bn in July

The inflow of remittances from abroad employees fell 7.3% month on month to $2.03 billion in July 2023, from $2.2 billion in June 2023, according to figures provided by the State Bank of Pakistan (SBP) on Thursday.

According to data, the monthly inflow of remittances decreased by 19.3% year on year, standing at $2.51 billion in the same month the prior year.

The drop in remittances, a critical source of foreign currencies for the cash-strapped government, is a matter of concern.

Experts ascribed the drop to seasonal causes, as remittances have usually declined following Eid.

https://twitter.com/StateBank_Pak/status/1689597171400855552?

Breakdown of remittances

Overseas Pakistanis in Saudi Arabia remitted the single greatest sum in July 2023, sending $486.7 million. This was, however, approximately 16% less than the $577.1 million sent by expatriates in the same month the previous year.

Inflows from the United Arab Emirates (UAE) declined by 31%, falling from $455.9 million in July 2022 to $315.1 million in July 2023.

Remittances from the United Kingdom totaled $305.7 million in June, a 25% decrease from $408.6 million in June 2022.

Furthermore, remittances from the European Union decreased by 4% to $283.6 million in July 2023. Overseas Pakistanis in the United States sent $238.1 million in July 2023, a 4% decrease year on year.