Overseas Pakis­tanis sent remittances worth record $29.4 billion in 2020-21 

WION Web Team
Karachi Published: Jul 14, 2021, 03:58 PM(IST)

Pakistan rupee (representative image). Photograph:( AFP )

Story highlights

To help their country meet its widening trade deficit, overseas Pakis­tanis remitted a record $29.4 billion in 2020-21. It will help achieve expected current account deficit in the last month of the just-ended fiscal year. Pakistan's central bank said that workers’ remittances continued their unprecedented streak of above $2bn for a record 13th consecutive month, with inflows of around $2.7bn in June (9% growth year-on-year) and 8% (month-on-month) 

In order to help the country meet its widening trade deficit, overseas Pakis­tanis remitted a record $29.4 billion during 2020-21. It will also help in achieving expected current account deficit in the last month of the just-ended fiscal year, said a Dawn report. 

According to the central bank, workers’ remittances continued their unprecedented streak of above $2bn for a record 13th consecutive month with inflows of around $2.7bn in June (9% growth year-on-year) and 8% (month-on-month). 

The State Bank of Pakistan’s (SBP) data, which was released on Tuesday, showed that remittances posted a 27 per cent year-on-year growth. It was the fastest rate of expansion since FY03. 

The remittances’ growth has helped in improving the country’s external sector position despite the challenging global economic conditions in the past year, said the State Bank. It also added that the seasonal pre-Eid related inflows helped to further boost remittances level during June. 

Last month, two of Pakistan's main lenders, the World Bank and the Asian Development Bank (ADB), have withheld approval of another $1 billion (7,300 crore rupees) worth of loans due to a failure to fulfil certain conditions, according to Pakistani media sources.   

On June 28, the World Bank was expected to approve $800 million (Rs 5,800 crore) in policy loans, down from the initial plan of $1.5 billion.   

According to a government source, the World Bank opted to cut the loan short after Pakistan failed to meet some of the terms. 

Similarly, the ADB has postponed clearance of the second tranche of the $300 million loans for the energy sector.   

(With inputs from agencies) 

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