Payments from foreign Pakistanis saw a double decline of 18 percent or $ 429 million in May 2020, compared to the same month the year before.
According to the State Bank of Pakistan (SBP), foreign workers' transfers totaled $ 1,872.8 billion. Dollars in May, while the transfer was $ 2.3 billion. Dollars in May 2019 - the highest in one month.
During the pandemic, job losses abroad and the closure of international borders are the main reasons for transfers. Foreign workers have not only quit their jobs, but also want to return to Pakistan.
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Significant contributions to the transfer of workers in May 2020 came from Saudi Arabia ($ 436.2 million), the United States ($ 428.3 million), the United Arab Emirates ($ 323.4 million), and the United Kingdom ( $ 284.8 million).
In the United Kingdom and the United States, the increase was 25.7 percent and 6.6 percent, respectively, and a 3.4 percent and 8.6 percent decline for Saudi Arabia and the United Arab Emirates from April 2020.
Transfers increased by more than $ 20 billion between July and May
International transfers rose from July 20 to May 20 to $ 20.654 billion, an increase of 2.7 percent or $ 551.5 million from July to May 19, or $ 20.103 billion.
Transfers in the current month should decline as a result of the global economic downturn. However, the value of transfers can exceed $ 21 billion, which will always be a high point.
To counteract the harmful effects of COVID-19, the government has introduced various incentives for referrers and service providers, including banks and stock exchanges. In this way, bank transfers through Hundi and Hawala could be attracted.
In these financial statements, the government has proposed to allocate Rs. 25 billion to promote bank transfers. It has also been proposed to abolish taxes between transfers of money by government, led by transfers between banks and other agencies.
The contribution of credit transfers contributes significantly to the maintenance of the country's current account. The decline in transfers may also impact the current account in the coming months.
