Saudi Arabia remains largest source of remittances to Pakistan

KARACHI: Saudi Arabia remains the largest source of remittances to Pakistan, data released by the Pakistani central bank showed on Wednesday, even though the amount of funds flowing in from the Kingdom dropped from $4.9 billion last year to $3.74 billion during the first 9 months of fiscal year 2019.
Overall, overseas Pakistani workers remitted $16.096 billion in the first nine months of fiscal year 2019, an increase of 8.74 percent compared with $14.80 billion received during the same period last year.
The combined contribution of Saudi Arabia, the United Arab Emirates and Gulf Cooperation Countries to total Pakistani remittances was 57 percent in fiscal year 2018. This dropped to 54.1 percent or $8.69 billion this year.
In March 2019, inflows from Saudi Arabia, the UAE, the US, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and European Union countries amounted to $405.87 million, $378.14 million, $271.11 million, $281.26 million, $167.80 million and $44.20 million respectively compared to March 2018 inflows of $427.62 million, $424.89 million, $247.17 million, $258.96 million, $183.79 million and $58.91 million.
After Saudi Arabia, the UAE is the second largest labor market for Pakistan. Other major contributions come from the United States where workers sent back $2.5 billion, and the United Kingdom, which remitted $2.47 billion.
“Economic turnaround in the US and the UK in the recent past resulted in declining unemployment and rising wages, and both factors contributed to a sharp rise in remittances from these countries,” the central bank report said.
Remittances received from Malaysia, Norway, Switzerland, Australia, Canada, Japan and other countries during March 2019 totalled $197.41 million against $202.26 million received in March 2018.