KARACHI: Saudi Arabia and the United Arab Emirates (UAE) remained top contributors to Pakistan’s highest ever remittance inflow in April, according to the country’s central bank that released the latest data on Tuesday.
“Workers’ remittances rose to an all-time monthly high of $2.8 billion in April 2021, which is 56 percent higher than the same month during the last year,” the State Bank of Pakistan said.
On a cumulative basis, remittances also surpassed previous records during the ten months of the current fiscal year (10MFY21).
The $24.2 billion the country received in July-April FY21, is 29 percent greater than the inflows in the corresponding period last year and the amount has already exceeded the full FY20 level by more than $1 billion.
The central bank took the credit for the highest remittance inflow, saying its proactive policy measures encouraged more remittances through formal channels.
Other contributing factors accounting for the record remittance levels this year include reduced cross-border travel due to COVID-19, orderly foreign exchange market conditions and, more recently, Eid-related money transfers by overseas Pakistanis to their homeland.
Pakistan received $6.4 billion from Saudi Arabia followed by $5.1 billion from the UAE and $2.77 billion from other gulf countries during July-April FY21, taking the overall contribution of the gulf states to 58 percent of the total inflow of $24.2 billion this year.
The United Kingdom and United States were other major contributors with $3.3 billion and $2.2 billion, respectively.
During the month of April, Pakistani workers remitted $664.5 million from Saudi Arabia while those in the UAE dispatched $549.3 million. The trend shows that inflows from the two countries will surpass previous records by the end of the current fiscal year.
During the last fiscal year (FY20), Pakistani workers in Saudi Arabia contributed $6.61 billion while inflows from UAE stood at $5.61 billion.
“Due to travel restriction, people are now transferring more money through digital means,” Samiullah Tariq, head of research at the Pakistan Kuwait Investment, told Arab News on Tuesday. “Previously, they physically carried cash while traveling to the country.”
“Cumulative inflows during the full fiscal year are expected to remain in the range of $28 billion to $29 billion,” he continued, adding: “The inflows in the coming months are expected to tone down.”
Analysts say major inflows from the gulf countries are supporting Pakistan’s balance of payment situation and strengthening the country’s national currency which closed at Rs152.60 against the US dollar in the interbank market on Monday.
Saudi Arabia, UAE remain top contributors to Pakistan remittance inflows
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Saudi Arabia, UAE remain top contributors to Pakistan remittance inflows
- Official statistics compiled by the State Bank of Pakistan point to an all-time monthly high of $2.8 billion last month
- Pakistan’s overall remittance inflow increased by 29 percent to $24.2 billion during the first ten months of the current fiscal year
Pakistan plans broader privatization push, eyes power utilities this year
- Considerably high losses, inefficiencies and mounting subsidies in power sector have dented Pakistan’s public finances
- Finance Minister Muhammad Aurangzeb says 26 state-owned entities have been handed over to Privatization Commission
ISLAMABAD: Pakistan is widening a sweeping privatization program following the sale of its national airline last year, with power distributors next in line and more state companies to be handed to the Privatization Commission, the finance minister said on Monday.
Pakistan’s government successfully divested a 75 percent stake in the Pakistan International Airlines (PIA) in December last year. The move was part of Islamabad’s broader privatization program, which aims to reduce fiscal losses inflicted by loss-making state-owned enterprises (SOEs) by either privatizing or restructuring them.
Pakistani officials have said the Privatization Commission plans to divest the country’s electricity distribution companies in two batches. The first phase will include the Islamabad Electric Supply Company, Gujranwala Electric Power Company and Faisalabad Electric Supply Company, followed by Hyderabad Electric Supply Company and Sukkur Electric Power Company in the second batch. Considerably high losses, inefficiencies and mounting subsidies in the power sector have dented Pakistan’s public finances over the years, making it a central focus of Islamabad’s reform agenda.
Speaking at a news conference about Pakistan’s privatization program, Finance Minister Muhammad Aurangzeb said there are five power distribution companies to be privatized this year, out of which the sell-side advisers for three are Alvarez & Marsel. He said the Turkish Investment Bank has been entrusted with the task of being the sell-side advisers for the other two companies.
“Overall, 26 SOEs have been handed over to the Privatization Commission,” Aurangzeb told reporters. “This decision is first made in the Cabinet Committee on SOEs, it then goes to the Cabinet Committee on Privatization, and then its overall approval is given by the prime minister and the cabinet.”
Aurangzeb vowed the government will take the privatization process forward with the same level of transparency as it had exhibited during the PIA sale last year.
“And this will be taken forward with a lot of speed because we will not stop at 26 SOEs,” the finance minister said. “We will also gradually hand over other state institutions to the Privatization Commission,” he added.
Speaking further about SOEs and their performances over the years, the minister said losses from the state entities decreased by about Rs74 billion [$264.6 million] over the last three years.
He said SOEs had reported losses of Rs905 billion [$3.24 billion] in 2023, Rs851 billion [$3.04 billion] in 2024 and Rs832 billion [$2.98 billion] in 2025.
Pakistan’s privatization push comes at the back of its efforts to ensure sustainable economic progress after a prolonged macroeconomic crisis that drained its foreign exchange reserves and triggered a balance of payments crisis.
