Karachi, August 11, 2021 (PPI-OT): Remittances sustain above US$2.7bn in Jul-2021

Jul-2021 marked the 14th consecutive month that Workers’ remittances remained above the US$2.0 billion mark. The US$2,707mn worth of inflows received during the month were the third highest ever recorded, falling short by just US$71mn and US$57mn received during Apr-2021 and Jul-2020, respectively.

The inflows received during Jul-2021 stand 11% higher than the average inflows during the outgoing fiscal year. That said, it seems that the spell of phenomenal double-digit YoY growth seen in FY21 may finally be over as the low base-effect finally tapers off.

Consider for instance that for the first time since May-2020, remittances have posted a YoY decline, albeit a marginal one of 2.1%. A Press Release by the SBP explains this decline as a result of fewer working days during the month. On a sequential MoM basis, inflows have been flattish, growing by just 0.7%.

We reiterate that the combined efforts of the SBP and the Government of Pakistan in incentivizing the use of formal channels have played a crucial role in boosting documented inflows. Moreover, travel restrictions during the pandemic and orderly foreign exchange market conditions have also helped improve the flow of remittances, as per the SBP press release.