The Pak Banker

Pak received record $2.7b remittance­s in July: SBP

- -APP KARACHI -APP

remittance­s have risen. The State Bank attributed the growth to the Pakistan The country received Remittance Initiative, record high remittance­s of which is what it has always $2.768 billion in the first credited whenever remitmonth of the new fiscal tances rise, as well as year, following the record exchange rate movements. $23bn remittance­s during Financial sector players the outgoing financial year. and currency dealers said

"This ($2.768bn) is the Pakistanis sent more highest-ever level of remitmoney to their families tances in a single month in and other relatives to help Pakistan," the State Bank them tide over Covid-19 of Pakistan (SBP) said in challenges and support its latest data. those members who lost people after three weeks the government would Prime Minister Imran jobs and businesses. as working and assesshave to ensure outstandin­g Khan took to Twitter soon The SBP reported that ments were in progress. payments to the IPPs to after the SBP announceth­e highest amount of He said no previous govactuali­se the revised ment and said: "More good remittance­s were received ernment ever tried to understand­ings. news for Pak economy. from Saudi Arabia, while review power sector probKhan said the present Remittance­s from overseas in terms of percentage the lems to resolve them. government took up the Pakistanis reached $2,768 highest growth was noted

Special Assistant to matter with IPPs in a very mn in July 2020, highest in inflows from European the Prime Minister on cooperativ­e environmen­t ever amount in one month Union countries.

Power, Shahzad Qasim, and thanked their sponsors in the history of Pakistan. Pakistan received who was present on the for achieving a win-win sitThis is 12.2% increase $821 million from Saudi occasion said the tariff uation in the larger national over June 2020 and 36.5% Arabia in July this year, renegotiat­ion commission interest by accepting the increase over July 2019." compared to $470m during led by Babar Yaqoob Feteh government's demands in In terms of growth, the same month last year, Muhammad had signed the light of its difficulti­es. workers' remittance­s an increase of 74.5pc. The memorandum­s of underHe said the previous increased by 36.5 per cent country has been receiving standing with about 90 per government­s they never over July 2019 year-onthe highest remittance­s cent IPPs under 1994, tried to address weaknessye­ar basis and 12.2pc over from Saudi Arabia for the 2002 and 2006 policies. es. Khan said most of the June 2020 (month-onpast several years as about

However, the commisagre­ements with IPPs month), the SBP said, one million Pakistanis are sion had not yet submitted under 1994, 2002 and adding that given the employed there. the report to the governwind power plants of 2006 Covid-19 impact on the The second biggest ment to work out savings had been reviewed and its global economy, this remittance­s of $538m secured through them. detailed computatio­ns and increase was encouragin­g. came from the United Arab

According to him, savings would be made PM welcomes 'good Emirates, showing a those savings would be run available in three weeks as news' for economy growth of 26pc compared through the tariff structure part of the overall reform Though the export of to the same month last to determine the final year.planalongw­ithsimilar­manpoweris­almostzero impact that would then go revisions in the power after the novel coronaviru­s A significan­t growth through the regulator's projects owned by the govhit the country in March of 31.7pc was noted from approval process. He said ernment. -App this year, the inflows of the United Kingdom as

Pakistanis living there sent $394m remittance­s in July.

However, remittance­s from the United States dropped by 22pc to $250.6m. The growth in July last year was over 13pc.

The SBP data shows that remittance­s from the entire Arab region have recorded a significan­t growth. The inflows from the Gulf countries showed 50pc growth in remittance­s as Pakistan received $297m in July, compared to $198m during the same month last year.

The inflows from the EU countries were surprising­ly very high as these jumped by 292pc in July this year, compared to the same month last year. Pakistan received $227.5m from EU countries as against just $58m in July last year.

However, the inflows from Malaysia took a nosedive as it fell to $22m in July, compared to $160m during the same month last year, a decline of 86pc.

Providing technical reasons for higher growth in remittance­s, the State Bank cited several factors, including orderly exchange rate conditions and policy steps taken by the bank and the federal government under the Pakistan Remittance Initiative.

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