Amid rising economic challenges Pakistan’s remittances in January dropped by about $450 million. Pakistan received remittances worth $ 2.1 billion, a fall from $2.5 billion in December, 2021. This is the lowest since August 2020, when the Covid 19 pandemic had just hit the world.
The drop in inflow of remittances have led to rise in concerns among a section of the society.
Pakistan based news organization the News International said that if the trend continues, this could “trigger a balance of payment crisis, thus worsening the country’s economic woes manifold” besides pushing inflation.
In November too, Pakistan’s inward remittance amount stood at $2.5 billion.
“These conundrums have struck at a time when political mercury is peaking in Islamabad as opposition parties are planning a motion of no confidence against Prime Minister Imran Khan in the Parliament,” Pakistan based news organization the news organization said. That apart, the rise global crude oil prices will also add to the worries.
Pakistan’s inflation rate in January touched 13 per cent. Since August last year, inflation has been inching up.
Even as the International Monetary Fund (IMF) approved the disbursement of $1 billion under its $6 billion loan programme to Islamabad, Khan has come under the scanner as his government passed the passed the Finance Supplementary Bill and the State Bank of Pakistan (SBP).
Remittances for many countries including Pakistan serve to provide the necessary support to the economy by helping in managing the external current account while boosting foreign exchange reserves.
According to data provided by the country’s central bank– State Bank of Pakistan, Saudi Arabia and UAE comprise the largest sources of remittance inflow. A chunk of remittances flow into from the US and UK too.
“Inflow of remittances throughout 2021 remained robust with larger number of Pakistanis living outside the country resorted to sending more money as the pandemic effect became a cause for concern the world over,” an analyst said.
