Fiscal year opens with fall in remittances

The new fiscal year opened with a decline in Pakistani foreign workers’ remittances, which were valued at $2.03 billion in July, the central bank said on Thursday. The remittances were 19.3 per cent lower compared to $2.51bn in July last year and 7.3pc down compared to $2.187bn in the previous month, i.e. June 2023, according to the State Bank of Pakistan (SBP) data. The July figure was also the lowest monthly reading since February and lower than the previous fiscal year’s average of $2.25bn. The last time monthly remittances rose year-on-year was in August 2022, the central bank data showed. In the previous fiscal year (2022-23), the country received $27.03bn in workers’ remittances, down 13.6pc from a year ago. The remittances have declined even though more Pakistani workers have moved abroad. Analysts attribute this to several reasons, primarily political and economic uncertainty. Pakistanis working abroad sent home $2bn in July, down 19pc; SBP forex reserves drop by $110m Besides, currency experts and dealers said that the difference in dollar prices in the interbank and open markets and SBP policies had also resulted in an illegal market, diverting significant inflows away from legal channels.