January remittances fall to 31-month low

Remitta­nces sent by overseas Pakistani fell below $2 billion in January, showing a 31-month low and resulting in a loss of about $2bn during the first seven months of the current fiscal year (FY23). The State Bank reported on Monday that the remittances stood at $1.89bn in January, the lowest since May 2020, showing a decline of 13 per cent year-on-year and 10pc month-on-month. The country is in dire need of dollars, but remittances during the current fiscal year kept declining. Pakistan depends more on remittances for dollars than exports. During July-Jan FY23, the country received a total inflow of $16bn, compared to $17.988bn during the same period last fiscal year. It shows a decline of 11pc and the country lost $1.982bn during seven months in terms of dollars. The government is struggling hard to get a $1.2bn IMF tranche to avoid default. The $1.98bn loss was the result of the government’s strategy to control the exchange rate.