In the first eight months of the current financial year, remittances from the United Arab Emirates (UAE) to Pakistan have recorded a significant decline of 15% on an annual basis. This is according to data released by the State Bank, which shows that Pakistanis working in the UAE sent foreign exchange worth 3.198 billion dollars to the country between July and February. This is 15% less than the same period of the previous financial year.
It is worth noting that remittances from the UAE have been declining for the past few months. In February, the volume of remittances from the UAE was recorded at 324 million dollars, which is a decrease of 16% year-on-year. In February last year, remittances from the UAE were recorded at 386 million dollars.
Despite the overall decline in remittances from the UAE, there was a 20% increase in the volume of remittances on a monthly basis in February, as compared to January. In January, the volume of remittances was recorded at $269 million, which increased to $324 million in February.
The decline in remittances from the UAE is a cause for concern for Pakistan, as remittances play a crucial role in the country’s economy. According to the State Bank, Pakistan received a total of $18.7 billion in remittances in the first eight months of the current financial year, which is 24% higher than the same period of the previous financial year.
In the meantime, the country’s foreign exchange reserves have been increasing steadily. The domestic foreign exchange reserves increased for the eighth consecutive week, reaching $13.14 billion in the week ending on March 11th. The increase in foreign exchange reserves is a positive sign for the country’s economy, as it helps to stabilize the exchange rate and boost investor confidence.