KARACHI: Inflows of workers’ remittances recorded a decline of 11 per cent in eight months (July – February) of fiscal year 2022-2023, according to data released by the State Bank of Pakistan (SBP) on Friday.
The overseas Pakistani workers sent $17.99 billion during first eight months of the current fiscal year as compared with $20.18 billion in the corresponding months of the last fiscal year.
READ MORE: Foreign remittances into Pakistan decline by 11pc during July – January
Experts believed that the high volatile in currency market resulted fall in workers’ remittances. The flow of remittances started declining during last year when the government put a cap on exchange rate to control the dollar.
The cap which was for around five months resulted in uncertainty in the currency market. But after pressure from the IMF the government compelled the dollar to let market decide the exchange rate.
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During the period of capping the exchange rate a grey market was created that encouraged foreign inflows through black. The overseas Pakistanis also found better rates of dollar in the black market.
The inflows from Saudi Arabia fell by 15.5 per cent to $4.34 billion during first eight months of the current fiscal year as compared with $5.14 billion in the same period of the last year.
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Similarly, inflows from the UAE recorded a decline of 15.3 per cent to $3.77 billion during the period under review as compared with $3.93 billion in the corresponding period of the last year.
Likewise, inflows from the UK also slipped by 5.7 per cent to $2.63 billion during first eight months of the current fiscal year as compared with $2.79 billion in the corresponding period of the last fiscal year.
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However, inflows from the USA improved by 3 per cent to $1.97 billion during the months under review when compared with $1.92 billion in the same months of the last fiscal year.
The inflows of remittances recorded nine period decline to $1.99 billion during the month of February 2023 when compared with $2.19 billion in the same month of the last year.
