World Bank: Remittance flow into the country rose by 17 percent last year
Lahore: Despite the Covid-19 pandemic, remittances to South Asian countries increased in 2020, according to a World Bank survey, and Pakistan was no exception.
Remittances to Pakistan rose by 17% in 2020, according to the World Bank. The rise in flows to South Asian countries was much faster than the 5.2 percent increase. The study also stated that remittances to Pakistan increased by about 17%, with Saudi Arabia leading the way, led by European Union countries and the United Arab Emirates.
The World Bank forecasted a sharp drop in remittance flows to Pakistan (including South Asia) in the 1HCY2020, implying a shortage of foreign exchange funds for Pakistan. Inflows, on the other hand, have risen significantly in the last year, contrary to expectations.
The bank had previously predicted a major drop in remittances to Pakistan and the rest of the country as a result of the coronavirus pandemic, which caused countries around the world to shut down their economies and return migrant workers back to their home countries.
Furthermore, the State Bank of Pakistan’s Roshan Digital Account programme, which enables overseas Pakistanis to digitally open a bank account with local banks for the online stock market and real estate investments, has helped the country raise more than $1 billion in the last seven months.
The increasing remittance flow has helped the central bank boost its foreign exchange reserves to a new level, bolstering the current account, which has reported a $945 million surplus in the first three quarters of this fiscal year.