Workers’ remittances fall by 11pc in 1HFY23: SBP State Bank of Pakistan

Workers’ remittances fall by 11pc in 1HFY23: SBP

KARACHI: The inflow of workers remittances declined by 11 per cent in first half (July – December) of fiscal year 2022-2023, according to data released by State Bank of Pakistan (SBP) on Friday.

The SBP received $14.05 billion during first half of the current fiscal year as compared with inflow of $15.81 billion in the corresponding half of the last fiscal year.

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Meanwhile, the inflow of workers remittances plunged by 19 per cent Year on Year (YoY) in December 2022. The country received remittances $2.04 billion in the month of December 2022 as compared with $2.52 billion in the corresponding month last year.

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A sharp decline in inflows of remittances has been reported the funds sent from Saudi Arabia and the UAE. The flow of remittances from Saudi Arabia fell to $516 million in December 2022 as compared with inflow of $627 million in the same month of the last year.

Similarly, the inflow of remittances from the UAE fell to $329 million in the month of December 2022 when compared with $453 million in the same month of the last year.

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The fall in remittances may be attributed to uncertain political conditions and huge gap in the interbank and open market rate the overseas Pakistanis using informal channels to send their funds.

The rupee ended at Rs228.15 to the dollar in interbank foreign exchange market on January 13, 2023. Whereas, the dollar is not available at the open market rates quoted by various forex associations. However, the greenback is available in grey market at Rs260 to Rs270.

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