KARACHI: Overseas workers’ remittances flowing into Pakistan dropped 19 percent year-on-year in December 2022 to $ 2.0 billion from $ 2.52 billion recorded in same month of previous fiscal year FY2022, central bank said.

Remittances were down 11 percent year-on-year for first half (July-December) of FY2023, State Bank of Pakistan said. Arif Habib Limited in recent note said key risk that had emerged in current account in recent months was deteriorating trend in remittances.

Brokerage said that sizeable gap (10-12 percent) between official and unofficial exchange rates amid administrative measures undertaken by SBP was major reason for declining official remittances trend, with rising flows via unofficial channels.

AHL report added that this trend was also evident from sharp decline in official remittances. “We estimate, country losing around $ 150-200 million monthly flows due to artificial gap in official and unofficial rates,” brokerage said.

During week ended on January 6, central bank’s forex reserves fell $ 1,233 million, or 22.12 percent to $ 4,343.2 million, statement from central bank said down from last week’s reserves of $ 5,576.5 million.

Published in The Daily National Courier, January, 14 2023

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