Remittances expected to maintain upward trend, says finance ministry

The finance ministry on Tuesday in its monthly economic outlook report said that the remittances were expected to maintain their upward trajectory due to the seasonal factors of Ramazan and Eid. “The external account position has strengthened, driven by continued increase in exports and a noteworthy rise in remittances despite an upward trend in imports,” it said, adding that the seasonal factors “will help to keep the current account within manageable limits”. The current account deficit (CAD) had declined to $12 million in February from $420m in the preceding month — with the country recording a surplus of $691m in the first eight months of FY25 against a CAD of $1.7 billion a year ago. Experts have attributed the surplus during the eight months to the surge of 32 per cent in remittances. It was also observed that due to Ramazan, higher inflows supported the country in keeping the exchange rate stable with relatively better foreign exchange reserves.