Raza Khan

Workers’ remittances from European Union (EU) countries declined by 8.6% during the first eight months (July-February) of the current fiscal year 2022-23. According to the data available with WealthPK, remittances from top sources in the EU, including Italy, Spain, Greece, France and Belgium, posted negative growth during the period under review.

In absolute terms, remittances from EU countries dropped to $2.035 billion during July-February 2022-23 from $2.227 billion during the same period of 2021-22, showing a decline of 8.6%. According to the State Bank of Pakistan (SBP), workers’ remittances from Italy, Pakistan’s largest source in the EU, declined 3.4% to $550.5 million during the period under review from $569.7 million during the corresponding months of 2021-22.

Pakistan diaspora in Spain sent home $321.3 million during the July-February period, which was 4.2% less than $335.4 million they sent back home in the corresponding period of 2021-22. Pakistan received $285.7 million from its diaspora in France during the first eight months of 2022-23, registering a decline of 12.8%, against $327.6 million in July-February 2021-22.

A decline of 7.3% was also recorded in remittances inflow from Greece, which dropped to $224 million during the period under review from $241.5 million in the same months of last fiscal year. Workers’ remittances from Belgium declined 42.2% during the July-February period to $102.2 million from $177 million in the corresponding period of 2021-22.

Similarly, remittances from Netherlands, Sweden and Ireland declined by 7.5%, 1.5%, and 22.1%, respectively. The remittances inflow from the above-mentioned countries also dropped during January. However, remittances from Germany remained positive and posted a marginal growth of 1% during the period under review. 

Remittances from Saudi Arabia, the United Arab Emirates (UAE) and the United Kingdom (UK) also posted negative growth during the July-February period.  Remittances from Saudi Arabia, Pakistan’s largest source of cash inflows, declined 15.5% to $4.346 billion during July-February from $5.141 billion in the corresponding period of last fiscal year.

A decline of 15.3% was also recorded in remittances from UAE, which dropped to $3.197 billion during the first eight months of 2022-23 from $3.777 billion in the same months of 2021-22. Remittances from Bahrain, Kuwait, Qatar and Oman also declined by 11.4%, 11.5%, 5.2% and 8.7%, respectively, during the period under review.

Pakistan’s overall remittances were recorded at $17.994 billion during the July-February period against $20.183 billion in the same months of last fiscal year with a decline of 10.8%. In February this year, overall remittances dropped by 9.50% to $1.987 billion from $2.196 billion in the same month of last year. 

According to experts, the main reason for the decline in remittances, especially from the western countries, is the rising inflation. Cost of living for Pakistani diaspora in Europe has gone up as the energy prices soared in recent months, especially after the Russia-Ukraine conflict.

Credit: Independent News Pakistan-WealthPk