Remittances plunge 20pc in first quarter

The crackdown against illegal currency business has failed to substantially improve the inflow of remittances in September as was anticipated by the economic managers of the country and the State Bank of Pakistan (SBP). The central bank on Tuesday reported that remittances rose just a little over 5 per cent month-on-month in September against the expectations of a 25pc hike. However, the remittances fell by 20pc in the first quarter compared to the same period last year. The financial sector was enthusiastic about the positive outcome of the crackdown against illegal currency business and smuggling while the bankers were reporting higher inflows from overseas Pakistanis. However, the September inflows stood at $2.206 billion compared to $2.094bn in August, an increase of $112m or 5.3pc. The crackdown was initiated in the first week of September. “The outlook of the country did not change with the crackdown. The country remained a risky place for the investors and the remitters,” said an analyst.