Remittances surge by whooping 51% Y/Y to $2,466mn in Jun’20

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•State Bank of Pakistan released the remittance numbers for Pakistan today. Inbound Remittances registered a 51% Y/Y increase to $2,466mn in Jun’20. On the monthly basis, remittances rose by 32% from USD 1,866mn in May’20 to USD 2,466mn in Jun’20. In the FY20 period, remittances increased by 6% Y/Y from USD 21.7bn to USD 23.1bn.

•In terms of country composition, remittance inflows from Saudi Arabia(85% Y/Y), USA(+69% Y/Y), UAE(+21% Y/Y), UK(+49% Y/Y) and Other GCC countries(39% Y/Y) were on an upswing. This uptrend can be attributed to the recovery in global economic activity complemented by relaxation of global lockdown.

•Earlier, government had revised the inbound remittances target for FY20 due to COVID-19 shock to $20-21bn , against the initial target of $24bn. In response to the revised target, government has comfortably achieved the target with remittances in FY20 standing at USD 23.1bn(+6% Y/Y).

•For the upcoming month, as countries switch from complete lockdowns to smart lockdowns, economic activity is expected to revive, which in turn would mean a rebound in remittances can be expected. In addition, with Eid-ul-Azha on the horizon, expatriates would possibly remit higher amount back home.

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