Karachi, July 13, 2021 (PPI-OT): FY21 remittances grow 27% YoY to reach US$29.4bn

Workers remittances ended up within touching distance of the US$30bn mark for FY21, finishing at US$29,371mn and reflecting impressive YoY growth of 27%.
Key growth sources remained USA (+58% YoY), U.K (+58% YoY) and EU Countries (+52% YoY).

Various measures by the SBP such as incentives for the use of formal banking channels played a role in the growth in remittances. Moreover, pandemic-related inflows also helped in shoring up the nation’s remittances.

During Jun-2021, remittances clocked-in at US$2,688mn, with growth of 8% MoM. Growth was seen from all major source countries, such as Saudi Arabia (9% MoM), UAE (6% MoM) and USA (7% MoM).

While the tally for Jun-2021 bodes well to support the expected higher deficit on the external account for this month, remittances for the month of July could end up even higher than the levels seen in June, considering the coincidence with Eid-ul-Azha inflows in the month.