Remittances from overseas Pakistanis have declined by 14 percent in November. During the first five months of the current financial year, the inflow of money has decreased by 9.6 percent.
According to the latest data released by the State Bank of Pakistan (SBP) remittances declined to $2.1 billion in November from $2.5 million in the same corresponding period of the last fiscal year. The inflows fell by 5 percent compared to $2.215 billion in October this year.
In the July-November period of the current financial year, 2022-2023 remittances declined from $1.27 billion or 9.6 percent to $12 billion from $ 13.28 billion in the same period of the previous financial year.
Bankers and currency experts have warned that the country could suffer heavy losses due to the artificial depreciation of the dollar in the interbank market. The current rate of the dollar in the interbank has been limited to Rs224.71 while in the open market the dollar rate is much higher.
Currency experts and bankers have said that the decline in remittances in the country could result in a huge difference in the dollar rate. The rate is Rs225 per dollar in the gray market while in the bank it is Rs224.71 per dollar.
Currency experts have said that remittances were largely dependent on political stability and that only income could stabilize the market.
Economic researchers have said that the difference of 10 percent between the exchange rate in the interbank and the open market was the main reason for the decline in remittances. They have said that overseas get a 10 percent higher rate for remittances sent from non-official sources which have led to a decline in official remittance figures.
Governor SBP had recently assured that Pakistan would pay only $4.7 billion this year and other remaining dues would be paid later but as a result, the market remained unviable.