KARACHI: Saudi Arabia and the United Arab Emirates (UAE) remained top contributors to Pakistan’s remittance inflows that increased by 3.4 percent on an annual basis in December 2021, the central bank data revealed on Friday.
The South Asian nation received $2.5 billion in workers’ remittances last month which was 2.5 percent higher than the month of November.
The country has consistently received over $2 billion in remittances every month since June 2020.
“Proactive policy measures by the government and SBP [State Bank of Pakistan] to incentivize the use of formal channels and altruistic transfers to Pakistan amid the pandemic have positively contributed toward the sustained inflows of remittances since last year,” the central bank said in an official statement on Friday.
Pakistan has received its highest inflows from Saudi Arabia to the tune of $626.6 million followed by the UAE that contributed $453.2 million. The remittances received from the United Kingdom and the United States amounted to $340.8 million and $248.5 million, respectively.
The country received $15.8 billion in remittances from overseas workers during the first half of the current fiscal year (FY22). The half yearly growth in inflows is 11.3 percent more than the corresponding period last year.
Pakistan secured its top remittance inflows of $4 billion from Saudi Arabia followed by $3 billion from the UAE during the first half of FY22, registering a two percent annual increase from both countries.
Analysts expect the country would receive more than $30 billion during the current fiscal year in workers’ remittances.
“We expect that the remittance inflows during FY22 will be around $31 billion,” Tahir Abbas, head of research at Arif Habib Limited, told Arab News.
Pakistan also received $31 billion in 2021, its highest ever remittance inflow which was 19 percent higher than 2020.
Saudi Arabia, UAE remain top contributors to Pakistan’s remittance inflows
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Saudi Arabia, UAE remain top contributors to Pakistan’s remittance inflows
- Pakistani workers remitted $15.8 billion, mainly from Gulf countries, during the first half of the current fiscal year
- The central bank says Pakistan’s monthly inflows have remained over $2 billion since June 2020 due to the government’s proactive policies
Islamabad says surge in aircraft orders after India standoff could end IMF reliance
- Pakistani jets came into the limelight after Islamabad claimed to have shot down six Indian aircraft during a standoff in May last year
- Many countries have since stepped up engagement with Pakistan, while others have proposed learning from PAF’s multi-domain capabilities
ISLAMABAD: Defense Minister Khawaja Asif on Tuesday said Pakistan has witnessed a surge in aircraft orders after a four-day military standoff with India last year and, if materialized, they could end the country’s reliance on the International Monetary Fund (IMF).
The statement came hours after a high-level Bangladeshi defense delegation met Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu to discuss a potential sale of JF-17 Thunder aircraft, a multi-role fighter jointly developed by China and Pakistan that has become the backbone of the Pakistan Air Force (PAF) over the past decade.
Fighter jets used by Pakistan came into the limelight after Islamabad claimed to have shot down six Indian aircraft, including French-made Rafale jets, during the military conflict with India in May last year. India acknowledged losses in the aerial combat but did not specify a number.
Many countries have since stepped up defense engagement with Pakistan, while delegations from multiple other nations have proposed learning from Pakistan Air Force’s multi-domain air warfare capabilities that successfully advanced Chinese military technology performs against Western hardware.
“Right now, the number of orders we are receiving after reaching this point is significant because our aircraft have been tested,” Defense Minister Asif told a Pakistan’s Geo News channel.
“We are receiving those orders, and it is possible that after six months we may not even need the IMF.”
Pakistan markets the Chinese co-developed JF-17 as a lower-cost multi-role fighter and has positioned itself as a supplier able to offer aircraft, training and maintenance outside Western supply chains.
“I am saying this to you with full confidence,” Asif continued. “If, after six months, all these orders materialize, we will not need the IMF.”
Pakistan has repeatedly turned to the IMF for financial assistance to stabilize its economy. These loans come with strict conditions including fiscal reforms, subsidy cuts and measures to increase revenue that Pakistan must implement to secure disbursements.
In Sept. 2024, the IMF approved a $7 billion bailout for Pakistan under its Extended Fund Facility (EFF) program and a separate $1.4 billion loan under its climate resilience fund in May 2025, aimed at strengthening the country’s economic and climate resilience.
Pakistan has long been striving to expand defense exports by leveraging its decades of counter-insurgency experience and a domestic industry that produces aircraft, armored vehicles, munitions and other equipment.
The South Asian country reached a deal worth over $4 billion to sell military equipment to the Libyan National Army, Reuters report last month, citing Pakistani officials. The deal, one of Pakistan’s largest-ever weapons sales, included the sale of 16 JF-17 fighter jets and 12 Super Mushak trainer aircraft for basic pilot training.
