Pakistan’s monthly remittance flows for Sep-2021 registered at US$2.67bn similar to the levels seen in Aug-2021. This takes 1QFY22 remittances to US$8.03bn, merely 1% higher from the previous quarter but depicts 12% jump from last year.
Remittances have posted stellar levels since pandemic halted underground banking channels and SBP incentivized flows through proper streams in the country.
During Sep-2021, major leading countries and regions contributed higher than the previous month, except for USA and UAE which posted a decline of 12% and 2%, respectively.
A look at quarterly flows shows a noteworthy contribution from the EU region whose composition and size has continued to grow. On the other hand, UK has recovered more than its historical levels while flows from USA have not been able to cross pre-pandemic levels.
We remain firm on our stance that remittance growth is expected to plateau during FY22 and it may likely witness mild blips in different regions owing to high base effect. Authorities continue to deliberate on the efficacy of incentives on remittances in a post-pandemic era and it will be a key change if it is discontinued, going forward.