KARACHI, Oct 10 (DNA): In a positive turn of events for Pakistan, the
country has witnessed a significant increase in workers’ remittances
during September 2023.
According to the latest data released by the State Bank of Pakistan
(SBP), remittances surged by 5.34% on a month-on-month (MoM) basis,
reaching a total of $2.21 billion, compared to $2.09 billion in the
previous month.
This boost in remittances is attributed to several key factors,
including improved transparency and the implementation of stringent
measures against dollar smuggling. These initiatives have helped create
a more secure and regulated environment for remittance transactions.
However, on a year-on-year (YoY) basis, there has been an 11.3% decline
in workers’ remittances for September, compared to $2.49 billion
received in the same month last year. This decline is indicative of the
challenges faced by the Pakistani diaspora and the evolving economic
landscape.
The majority of remittances during this period originated from various
source countries. Saudi Arabia led the way, contributing $538.16
million, followed by the UAE with $399.77 million, the U.K. with $311.06
million, EU countries with $269.25 million, and the USA with $263.42
million. These source countries continue to play a pivotal role in
supporting Pakistan’s economy through remittance inflows.
Looking at the cumulative figures for the first three months of the
fiscal year 2023-24 (3MFY24), Pakistan received a total of $6.33 billion
in remittances.
While this is a significant amount, it represents a 19.85% decrease
compared to the $7.9 billion received during the same period in the
previous fiscal year (3MFY23). The decline underscores the ongoing
challenges and fluctuations in remittance trends.
It’s worth noting that the drop in remittances during the previous month
was primarily due to a growing disparity between official and unofficial
exchange rates. Many non-resident Pakistanis opted to use unofficial
channels, which offered a higher exchange rate per dollar, contributing
to this decline.
In response to these challenges, the Pakistani authorities, led by the
army, initiated crackdowns against speculators, hoarders, and smugglers
to curb illegal dollar outflows. This has led to a strengthening of the
Pakistani Rupee (PKR) against the U.S. Dollar (USD) in the official
market.
Furthermore, the State Bank of Pakistan (SBP) introduced reforms aimed
at consolidating and transforming various types of exchange companies
into a single category with stricter regulations and higher capital
requirements. These reforms are enhancing transparency within the
remittance industry and strengthening regulatory oversight.
As part of these measures, SBP suspended the authorization of four
exchange companies in September, underscoring the central bank’s
commitment to enforcing regulatory standards and ensuring the security
of remittance transactions. DNA
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