There was a lot of expectation from remittance keeping in view the previous year stats from the inflows that it brought from different countries. But the results from the last four months proved not to be good. In fact, they have seen a decline of 3.83 percent in the initial months of year 2016.
It was reported that remittances only grew in the preceding year, the four fiscal months saw an increase of 5.2%.
The news came through the State Bank of Pakistan which said that the transmittals from important countries have dropped in the serving months of July – October. The report also predicted that the money coming in from different destinations will decline due to worsening economic scene, especially in countries which are oil-rich. The result has also been due to negligible growth in United States and United Kingdom.
Last year remittances in the fiscal year July-October were reported to be $6.507 billion which currently fell to $6.258, for the same period – 2016.
Talking about specific remittances, such as from oil-rich country – Saudi Arabia, its remittances fell by 5.8% – an amount of $1.793 in the four months. However, the amount was significantly higher if we look at it on monthly basis.
Getting into inflows from the Arab country, they increased by 7.4% in September – an amount $437 million.
The remittances received by UK and US were seen to drop even more than Saudi Arab. It was reported that UK saw a drop of 17% while US of 13%, both countries suffered losses in the four-month period. The amount received from the two countries totaled at $1506 million, a breakup of $787 million from United States and $719 million from United Kingdom.
It is to note that apart from these countries, UAE is another source of remittance for Pakistan, where a large number of employees are working who send money to their loved ones. The Gulf country showed an inflow declining rate of 4.5% amounting to $1.415 billion. Dubai saw a decline of 13.5% whereas Abu Dhabi was the only part which reported a rise of 18%.
To cope up with the future obligations for debt repayment, the Government publicized on Wednesday that it shall increase $500 from Sukuk through the international market.