Karachi, September 13, 2021 (PPI-OT): Aug-2021 marks 15th month of above US$2bn remittances

Pakistan’s monthly remittance flows for Aug-2021 stood at US$2.66bn (+27% YoY) which makes it the 15th consecutive month of remittance run rate of over US$2bn.

The remittances are slightly lower (-2% MoM) when compared to Jul-2021. Cumulatively, the 2MFY22 remittances now stand at US$5.36bn (+10% YoY).

During Aug-2021, all the leading countries/regions continue to post high growth on a YoY basis, where US posted 38% jump followed by UAE with 25% growth whereas UK and Saudi Arabia both displayed a 17% jump.

It is pertinent to note that, on a MoM basis, Saudi Arabia is the leading contributor with a positive jump in remittance flows (+8% MoM; US$53.41mn).

We expect remittance growth to plateau during FY22 and may likely witness short blips from high base effect as we continue to tread along the remaining months of the current fiscal year.

The high growth streak of remittances is expected to normalize once COVID-19 travel bans are lifted and underground banking channels re-open.