By Samia Khalid ISLAMABAD, Mar 29 (INP-WealthPK): Remittances’ inflow increased 7.6% year-on-year to $20.1 billion in the first eight months of the current fiscal year 2021–22, according to the State Bank of Pakistan (SBP). Pakistan received $2.2 billion in remittances in February 2022, up 2% compared to $2.14 billion in January. Pakistanis residing in Saudi Arabia remitted the largest amount of $558.2 million in February. It was 3.38% higher than the $539.9 million received in January 2022. However, expatriates in the UAE sent home a 3.42% higher amount as receipts rose from $373.8 million to $386.6 million. Remittances from the UK dropped 0.28% to $319.2 million. The expatriates sent home $208 million in January 2022. Remittances make up a considerable part of Pakistan’s economy, as they add to the foreign exchange reserves and lower the current account deficit. For this reason, the government and the SBP have been investing in trying to promote overseas remittances. This includes the initiatives taken to incentivise remittance inflow by authorising banks to allow transactions through foreign correspondence entities, and promising paid incentives for mobile wallet use for remittance transactions, as well as incentives for banks to achieve the target of bringing in 15% more remittances than the previous year. To increase overseas business activities in the country, a regular and structured engagement with investors along with a predictable, transparent, and consistent policy framework is imperative. Moreover, simplifying the tax regime and increasing the positive visibility of Pakistan at the international forums will also contribute towards improving the perception of business environment in Pakistan. Addressing an overseas convention in Islamabad recently, Minister for Planning, Development & Special Initiatives Asad Umar said overseas Pakistanis are contributing to the economy through remittances and are playing a pivotal role in the country’s development. “Pakistan is one of the countries that has a large number of workers in foreign countries, and they are contributing to the national economy through valuable foreign exchange. There has been a steady increase in remittances during the last few years.” Addressing the overseas Pakistanis convention, the minister highlighted the government’s efforts to pull the country out of the tangles of financial debt and economic crunch following the Covid-19 pandemic, with record tax collections and growing exports.