Pakistan collects $16.3 billion in foreign remittances during the first 10 months of the financial year 2017-18, there was an increase of 3.9 percent as compared to previous financial year’s 10 months.
The biggest concern for Pakistan still looms, as the major chunk of remittances from Saudi Arabia is continuously declining. However, the country (Saudi Arabia) is still the largest source of remittances in Pakistan.
Saudi Arabia is apparently down from business and development point of view for the last few years due to making reasons including its political and economic instability such as a clash with Yemen and Iran. The businesses in Saudi Arabia are facing difficulties to survive in the long run resulting in cutting down operations and workforce.
Money inflow from Saudi Arabia declines by 9% reaching $4.09 billion during the period July to April FY2017-18. Tens and thousands of Pakistanis lost their jobs in Saudi Arabia, due to the downturn in Saudi businesses the government set the priority for locals to get the job first in the labor market which created more difficulties for Pakistanis to keep going with their jobs. Additionally, special taxes imposed on overseas workers lead to thousands of workers to leave their jobs and return back to their home country.
United Arab Emirates (UAE) has the second largest share in remittances, however, remittances from UAE grew by 3.9 percent with a total of $3.62 billion.
Remittances from the United Kingdom has seen a major improvement, the remittances grew by 22 percent reaching $2.263 billion while from the US it was up by 13 percent with the total of $2.188 billion.
The overall remittances from GCC countries fell by 3.5 percent to $1.815 billion during the first ten months of FY 2017-18, however, the overall remittances situation is not bad for the country.
Pakistan’s Foreign Reserves down by $347 million
Foreign reserves held by the State Bank (SBP), fell by $347 million to $11,163m due to external debt servicing which is increased and other official payments.
Total foreign liquid reserves of Pakistan reached at $17,286.4m on the week ended May 4, according to a press release by SBP. While commercial banks holding fell by $78m to reach $6,123.7m