Remittance inflows from overseas workers increased 2% month-on-month in February 2022, amounting to $2.19 billion, said the State Bank of Pakistan (SBP) on Thursday.

“With $2.2 billion of inflows during February 2022, workers' remittances continued their strong performance and have remained above $2 billion since June 2020,” said the SBP.

Remittance inflows during January 2022 stood at $2.14 billion.

“In terms of growth, during February 2022, remittances increased by 2% on MoM basis despite fewer working days.”

Inflows were 3% lower on a year-on-year basis, compared to $2.3 billion registered during February 2021.

• Remittances in February up 2% month-on-month, clock in at $2.19 billion

  Remittances in July-February up 7.6% year-on-year, clock in at $20.141 billion

  SBP governor optimistic inflow to cross $30 billion this fiscal year

However, during the eight months of FY22 (July-February), remittances have risen to a record $20.1 billion, 7.6% higher than the same period last year, added the central bank.

Remittance inflows during January 2022 were mainly sourced from Saudi Arabia ($580 million), United Arab Emirates ($387 million), United Kingdom ($319 million) and United States of America ($210 million), data showed.

SBP Governor Dr Reza Baqir, talking exclusively to Aaj News on Wednesday, had said that as per the central bank forecast, remittances are expected to cross $30 billion this fiscal year.

“Despite an increased base, remittances are witnessing positive growth,” said Baqir.

Pakistan heavily relies on remittance inflows to boost its foreign currency reserves that remain under pressure due to a high current account deficit, imports and external debt repayments.

This article was first published in Business Recorder on March 10, 2022.