Remittances contract 14pc to little over $27bn in FY23

Pakistan lost over $4 billion in remittances sent by overseas Pakistan in FY23, much higher than the amount the PMLN-led coalition struggled to secure from the International Monetary Fund (IMF) during the outgoing fiscal year. Data issued by the State Bank of Pakistan (SBP) on Monday showed that the remittances month-on-month slightly increased by 4pc to $2.183bn in June while it witnessed a 22pc decline when compared with $2.8bn remittances the country received in June 2022. The country received a total of $27.024bn in remittances during FY23 against a record $31.278bn in FY22, a decline of 13.6 or $4.254bn. The central bank did not offer any reason for the decline of the remittances but analysts said the government’s effort to keep the dollar at lower than actual rates hit the inflows through banking channels. The government tried to maintain the dollar-rupee parity at Rs220 in the first half of FY23, which proved counterproductive and the greenback grossly appreciated in the open market resultantly a grey or black market emerged that started offering Rs20 to Rs25 per dollar higher rates badly hitting remittances.