With inflows of $2.71 billion in July 2021, workers’ remittances continued their strong trend, remaining above $2.0 billion for the 14th consecutive month. This is the second-highest ever level of remittances reported in the month of July.
In terms of growth, remittances increased by 0.7 percent over previous month and showed a decline by 2.1 percent over the same month last year. This marginal y/y decline was largely on account of Eid-ul-Adha, which resulted in fewer working days this July compared to last year.
Remittance inflows during July 2021 were mainly sourced from Saudi Arabia ($641 million), United Arab Emirates ($531 million), United Kingdom ($393 million) and the United States ($312 million).
Proactive policy measures by the Government and SBP to incentivize the use of formal channels, curtailed cross-border travel in the face of COVID-19, altruistic transfers to Pakistan amid the pandemic, and orderly foreign exchange market conditions have positively contributed towards the sustained improvement in remittance inflows since last year.
