By Mati Ullah Khan
The remittances sent by Overseas Pakistanis have always been a key source of balance of payment support in the Country.
In Pakistan, when the financial situation remains aggravated due to insufficient Foreign Exchange Reserves together with increased import bills and deteriorating trade balance, remittances provide a significant support to sustain the Current Account Deficit (CAD).
When Pakistan Tehreek-e-Insaf (PTI) took over in August 2018, the Country had been witnessing its worst ever balance of payment crises as their predecessor Pakistan Muslim League-Nawaz (PML-N) had left a Trade Deficit of US$ 37.5 billion, Current Account Deficit of US$ 19.1 billion, US$ 55.7 billion imports, US$ 24.8 billion exports, stagnant remittance of US$ 19.9 billion, and merely US$ 9.7 billion reserves held by the State Bank of Pakistan.
Workers’ remittances in PML-N tenure (2013-18)
Fiscal Year | Workers’ remittances | Increase + / Decrease – |
| 2012-13 | US$ 13.9 billion | + 30.1% |
| 2017-18 | US$ 19.9 billion |
In the PTI tenure from 2018 to 2022, both the remittances and exports registered a significant growth. The workers’ remittances – which remained stagnant in last three years of PML-N – also picked up and reached US$ 31.3 billion in the Fiscal Year 2021-22.
Also Read: Economic Performance of PPP, PML-N & PTI since 2008
Workers’ remittances in PTI tenure (2018-22)
Fiscal Year | Workers’ remittances | Increase + / Decrease – |
| 2017-18 | US$ 19.9 billion | + 57.2% |
| 2021-22 | US$ 31.3 billion |
When the power went into the hands of multi-party PDM alliance led by PML-N, remittances again slipped from US$ 31.3 to US$ 27.0 billion in FY 2022-23, registering a decrease of US$ 4.3 billion – 13.73%.
Workers’ remittances in PDM tenure (2022-23)
Fiscal Year | Workers’ remittances | Increase + / Decrease – |
| 2021-22 | US$ 31.3 billion | – 13.73% |
| 2022-23 | US$ 27.0 billion |
In July 2023, – the first month of next FY 2023-24 – under the PDM government, the workers’ remittances recorded an inflow of US$ 2 billion, a decrease of 19% as they had stood at US$ 2.5 billion during the same month last year.
Workers’ remittances recorded an inflow of US$2 billion during July 23.
For detail see https://t.co/rPOvn9Dr8Nhttps://t.co/7XBd4uOcHC#SBPRemittances pic.twitter.com/vGbp13dOML— SBP (@StateBank_Pak) August 10, 2023
Also Read: Dollar Rate in Pakistan increased by Rs 104.54 in 16-month PDM government
Month-wise workers’ remittances in PTI & PDM tenures
Month | PTI tenure | PDM tenure |
FY 2021-22 | FY 2022-23 | |
| July | US$ 2,736.1 million | US$ 2,510.9 million |
| August | US$ 2,682.6 million | US$ 2,744.3 million |
| September | US$ 2,779.9 million | US$ 2,431.3 million |
| October | US$ 2,628.6 million | US$ 2,215.7 million |
| November | US$ 2,459.7 million | US$ 2,108.3 million |
| December | US$ 2,520.4 million | US$ 2,102.0 million |
| January | US$ 2,180.4 million | US$ 1,900.1 million |
| February | US$ 2,196.2 million | US$ 1,990.3 million |
| March | US$ 2,834.8 million | US$ 2,536.7 million |
| April | US$ 3,124.4 million | US$ 2,198.3 million |
| May | US$ 2,346.2 million | US$ 2,102.6 million |
| June | US$ 2,789.6 million | US$ 2,187.1 million |
July-June | US$ 31,278.8 million | US$ 27,027.6 million |
Source: https://www.sbp.org.pk/ecodata/Homeremit.pdf
