February 25, 2021
Roshan-digital-account-pakistan
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In January 2021, remittances surge 19 percent to $2.27bn

In January 2021, the State Bank of Pakistan (SBP) reported inflows worth $2.27 billion, receiving remittances of over $2 billion for six consecutive months, marking a 19 percent rise. The remittances received were registered at $1.9bn in January 2020. In addition, the volume of remittances rose by 24 percent in the first seven months (Jul-Jan) of the current fiscal year, reaching $16.47bn compared to the volume of $13.27bn in the same period last year. In view of the surging remittances, in January, the SBP revised its receipt goals to $24-25bn for FY21. The estimates were previously projected to be about $23-24bn. In addition, the current account deficit forecasts have also been altered and stand at 0.5-1.5 percent of GDP, compared to previous estimates of 1-2.0 percent of GDP. Pakistan’s construction and real estate industries are the largest recipients of overseas Pakistani remittances. Foreign exchange inflows have risen sharply following the introduction of the Roshan Digital Account (RDA). The increase in remittances reflects the confidence of Pakistani migrants in the initiatives taken by the incumbent government to legalize transaction channels. The increase in remittances reflects the confidence of Pakistani migrants in the initiatives taken by the incumbent government to legitimize transaction channels.

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