SBP receives 505.5 million dollars from the World Bank

The State Bank of Pakistan has received 505.5 million dollars from the World Bank today.

The aforesaid announcement was made by SBP on its official twitter handle.

Pakistan and World Bank had signed a financing agreement last week to provide financial support to the country.

#SBP has received USD 505.5 mn today from @WorldBank

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— SBP (@StateBank_Pak) July 28, 2020

This is concessional financing in the form of budgetary support that is being provided under Resilient Institutions for Sustainable Economy (RISE), Development Policy Financing with the objective to enhancing the policy and institutional framework to improve fiscal management, and improving the regulatory framework to foster growth and competitiveness.

Earlier State Bank of Pakistan increased Workers’ remittances by a significant 50.7% during June 2020 to reach record high USD 2,466.2 million compared with USD 1,636.4 million in June 2019.

Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of USD 23,120.7 million during FY20, witnessing a growth of 6.4% over USD 21,739.4 million during FY19.

It would also be pertinent to mention here that the inflow of workers’ remittances registered an increase of 7.8% during the March-June 2020 pandemic period compared with the corresponding period of 2019.

During June 2020, larger amounts of Workers’ Remittances are received from Saudi Arabia (the US $ 619.4 million), USA (the US $ 452.0 million), UAE (the US $ 431.7 million) and UK (the US $ 401.0 million) recording an increase of 42.0 percent, 7.1 percent, 33.5 percent, and 40.8 percent respectively as compared to May, 2020.

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The significant increase in remittances during June 2020 can be attributed to a number of factors. Since many of the countries eased lockdown in June, overseas Pakistanis were able to transfer accumulative funds, which they were unable to send earlier.