'This was attributed to the 5.4 percent year-on-year drop in cash remittances
from land-based workers, which was mitigated by the 6.3-percent increase in transfers from sea-based workers,' the BSP said.
Tracing the source of the drop, the Central Bank traced the decline largely to land-based Filipino migrant workers, whose remittances
dropped by 5.4 percent during the month.
Pakistan has a trend of receiving the largest amount of remittances
in a year in Ramazan.
Diokno said the steady growth in personal remittances
from January to May was driven largely by remittance
inflows from land-based overseas Filipino workers with work contracts of one year or more.
For the month of May only, cash remittances
increased by 5.7 percent year-on-year to $2.6 billion.
grew by more than 14 percent in India, where a flooding disaster in Kerala likely boosted the financial help that migrants sent to families," the Bank said.
have been found to rise when the recipient economy incurs a downturn in activity or macroeconomic shocks owing to financial crisis, natural disaster or political conflict.
Briefing about various steps taken by the government for promotion of remittances
, the SBP governor said a significant improvement in remittances
had been made after giving incentives to banks, promotion of M-Wallet scheme and relaxation in value added tax on remittances
From this we can estimate that 3.5 million children (40% of 9 million)in lower and lower-middle income countries are kept in school because of remittances
'The future growth of remittances
is vulnerable to lower oil prices, restrictive migration policies, and an overall moderation of economic growth.
to South Asia projected to increase by 13.5 per cent, to $132 billion in 2018