Remittances from Pakistanis living abroad decreased to $2.25 billion in November 2023, partially as a result of the global economic slowdown and the return of volatility in the rupee-dollar exchange rate in the first half of the month.
In a span of seven months, remittances decreased from a peak of $2.46 billion, attained in October 2023.
Remittances Fell by 9% in Nov 2023
According to data released on Friday by the State Bank of Pakistan (SBP), worker remittance inflow fell by 9% to $2.25 billion in November from $2.46 billion in October.
However, when compared to the $2.17 billion in remittances received in the same month the previous year, the inflows increased by 4%.
Remittances decreased by 10% to $11.05 billion in the first five months of the current fiscal year (Jul-Nov) from $12.32 billion in the same period the previous year.
Cash Inflow From Saudi Arabia
According to a breakdown of the data, Saudi Arabian inflows fell by 12% to $540 million in November from $617 million the previous month.
Pakistani expatriates in the United Arab Emirates (UAE) sent $409 million home, a 14% decrease from the $474 million they sent in October.
The amount of $268 million that non-resident Pakistanis sent from EU member states was 10% less than the $298 million they had received the month before.
From $283 million to $261 million in the prior month, remittances from the US fell by 8%.
Other countries inflows dropped to $429 million from $461 million in the previous month, a 7% decline.
Remittances improved in November, rising 3% to $342 million from $330 million in October, with the UK being the only source.
Illegal Hawala-Hundi Network
Prior to this, the illegal Hawala-Hundi network operators prompted to reappear in the border regions of Afghanistan and the Middle Eastern countries by the return of volatility in the rupee-dollar exchange rate during the first two weeks of November.
The amount of money that Pakistani expatriates send home in foreign currency is reduced as a result of their higher prices, which they charge them for doing so.
Furthermore, Pakistanis living abroad are finding it harder to send more money to their loved ones back home as a result of the global economic downturn, which has partially led to a decline in official inflows.
To read our blog on “SBP and AMF signs an MoU to ease cross border remittances,” click here.
