What Will Be The Trend Of Remittance Amid Coronavirus Pandemic?

Pakistani expatriates send money to Pakistan was increasing each year, but this year the situation is not the same. The most extreme effect of the Covid-19 pandemic has been observed on livelihoods all over the world. Economic downturns have disproportionately impacted migrant jobs. Migrants face lower wages or more unsatisfactory working conditions, even though they are not unemployed. Xenophobic aggression often exacerbates such crises.

Being cut off from the social safety net adds to the misery. Considering all of these concerns, the World Bank, IMF, and Asian Development Bank (ADB) projected that remittance outflows to no-industrial countries would drop by 20% or more in 2020. According to the ADB, South Asian countries such as Bangladesh, Nepal, and Pakistan could be the worst affected globally, with remittances falling by 26% or more.

How You Will Compare Remittance Flow in Pakistan 2019 & 2020 Pandemic Situation?

During the global pandemic height, online money transfer to Pakistan inflows to South Asian countries did indeed drop. For example, total remittances received in Bangladesh in March, April, and May were 12.5%, 23.8 per cent, and 13.9 per cent lower than in the same months the previous year.

For the same time frame, Pakistan’s remittance growth rate was (March: 9.9 per cent, April: 0.8 per cent, May -19 per cent). However, in June and July 2020, such negative patterns in all countries reversed, contrary to predictions. Remittances to Pakistan rose by 51.2 per cent in June. In July and August, Pakistan’s mark: (36.5 per cent on July, 24 per cent in August).

What Is The Trend Of Remittance In Pakistan During 2021?

Among emerging Asian economies, Nepal could see a 28.7% drop in remittances; Tajikistan (27.9%), Bangladesh (27.8%), Pakistan (26.8%), and the Kyrgyz Republic (25.2%).

Curfews, lockdowns, and travel bans implemented worldwide to slow the spread of the COVID-19 infection have decimated employment and reduced migrant money transfer to Pakistan, cutting off a lifeline for millions.

However, according to data from Pakistan’s central bank, remittance increased by 50.7 per cent in June 2020, reaching a new high of $2,466.2 million, up from $1,636.4 million in June 2019. According to the state bank, remittances hit a new high of $23.12 billion in fiscal year 2020, up 6.4 percent from the previous year. The central bank said last month that during the pandemic period of March-June 2020, inflows of workers’ remittances increased by 7.8% compared to the same period in 2019.

In February 2021, the flow of workers’ sending money to Pakistan online remained high, topping $2 billion for the ninth month in a row, assisting the government in keeping the country’s foreign currency reserves stable and bolstering its ability to make international payments smoothly.