According to the data released by the State Bank of Pakistan on 14 April, workers’ remittance in the month of March 2022 rose to its highest level in history at just over $2.8 billion.
The State Bank also took to Twitter to announce the development in which it added that “Cumulatively, remittances have risen to $23 billion during the first nine months of FY22, up 7.1% over the same period last year.”
Workers’ remittances rose to their highest level in history at $2.8 billion in March 22. Cumulatively, remittances have risen to $23 billion during the first 9 months of FY22, up 7.1% over the same period last year. https://t.co/7XBd4uNES4 pic.twitter.com/2Aw7WjtwKA
— SBP (@StateBank_Pak) April 14, 2022
It is important to note that the data released by the state bank is provisional, and a final report from the central bank is still awaited. According to the provisional report, overseas Pakistani’s from Saudi Arabia remitted $677.8 million in the month of March, making it the largest remitting partner of Pakistan.
Saudi Arabia was followed by the United Arab Emirates, from where foreign remittance amounted to $515.1 million. Other major contributors include the United States of America, the United Kingdom, and Dubai, all of which remitted more than $300 million. In Europe, Italy remained the largest remitter from where expatriates sent home $70.2 million in March.
Read more: Record remittances received in Roshan Digital Account
Earlier in February, workers’ remittance was recorded at just under $2.2 million. Remittance from the United States for the month of March increased by over $90 million compared to February when it recorded under $210 million worth of remittance. Remittance from Saudi Arabia also witnessed a similar trend.
As it stands, the total remittance received by Pakistan in the fiscal year approximates around 22,952, $1,516 million more than the remittance received in the fiscal year 2021.
Pakistan receives a generous amount of remittance from countries across the world. According to data released by the World Bank, remittance in Pakistan accounted for 9.9 percent of the country’s total GDP in 2020, a significant increase compared to 2017 when it stood at around 6.5 percent.
The success of remittance is mainly attributed to the trust the overseas Pakistanis put in the ruling government. Compared to Pakistan, share of remittance as a percent of total GDP in India and Bangladesh stands at a measely 3.1 percent and 6.7 percent, respectively.
Read more: Remittances above $2bn for 15th consecutive month
To boost the remittance from abroad, Pakistan introduced Sohni Dharti Remittance Program. Sohni Dharti Remittance Program (SDRP) is a point-based loyalty scheme for remitters who work abroad and send money to Pakistan through proper banking channels or exchange companies.
Under the system, remitters earn points for every remittance they make, and this is used to incentivize the use of proper channels to send money. The overseas Pakistanis can then use these points to buy products and services from public sector organizations. The scheme was started in November last year.