Pakistan lost $3.7bn in remittances

[RIP Pak LAW]

KARACHI: The remittances sent by overseas Pakistani workers dipped month-on-month by 4 per cent and 10pc year-on-year to $2.1 billion in May.

The latest data released by the State Bank of Pakistan (SBP) on Tuesday showed that the country lost $3.7bn in remittances during the first 11 months of FY23 mainly due to a widening exchange rate gap.

The inflows tumbled by 12.98pc to $24.831bn in 11MFY23 compared to $28.489bn in the same period of last fiscal year. The country has been struggling hard to get a $1.1bn tranche from the IMF for a year but the shrinking inflows of remittances could make it more difficult for the country to manage the external account with poor foreign exchange reserves of less than $4bn.


Pakistan received $2.102bn in May compared to $2.198bn in April. It received $2.346bn in May last year.

Currency dealers have consistently been drawing the attention of the government to address the reasons for the decline in remittances but no timely measures were taken to limit the growing role of the grey market which has practically replaced the exchange companies.

The illegal market offers dollar prices more than Rs20 per dollar higher than banking market rate. The exchange companies were facing serious shortage of dollars so the price of greenback gone up open market to come close to the grey market rate. The grey market attracted the remittances.

At the same time, the State Bank permitted importers to arrange dollars for their imports. The importers rushed towards the grey market which further strengthened it and remittances declined due ever increasing dollar rates in the grey market.

The biggest inflow was from Saudi Arabia but was declined by 16.3 per cent to $5.924bn. The 2nd highest inflow was from UAE which was around $4.321bn but it also showed a decline of 19.2 per cent.

Pakistan received 3rd largest amount of remittances from UK which was $3.718bn; it shows a decline of 8 per cent compared to the last year.

Other significant inflows were from USA with $2.824bn (o.9 per cent up), GCC countries $2.918bn (11.5 per cent down) and $2.839bn from EU countries showing a decline of 7.7 per cent.

The labour outflow from Pakistan shows significant increase like previous year but the declining inflows clearly indicate that widening price gap of dollar could be more problematic in the coming months. The dollar officially available at Rs286-287 in the inter-bank market but the grey market offers up to Rs311-313 per dollar.

Published in Dawn, June 14th, 2023

Pakistan lost $3.7bn in remittances

Illegal market offers dollar prices more than Rs20 per dollar higher than banking market rate.

www.dawn.com

Bus IK ko khattum kerna hai

I am sure Army boot lickers here will find this news insignificant

More music to GHQ ears as Shell Pakistan plans to quit from country.

 

[Abid123]

What about Pakistani citizens start paying income tax? The day Pakistanis start paying tax there will not be a need for IMF, Saudi loans, Chinese loans etc...

 

[IceCold]

Hun aram ha yadio?

 

[RIP Pak LAW]

history will be very cruel to this imported govt marriage with some generals

 

[NooriNuth]

They don't want to give us voting rights but want our money.
I am British Pakistani, but I am also British. Means I have many other countries open for business to me, compared to a resident Pakistani.
But preferred Pakistan because of loyalty to Pakistan.
I don't have that anymore.
I can't trust those thieves ruling the country.
I had no such trust issues when IK was in government. I was buying property,cand depositing money in Roshan digital.
I have withdrawn my money from Roshan digital, and not buying anything in Pakistan anymore

 

[Jazzbot]

As a wise man once said:

Youthias owning chooti-yas.

 

[Samlee]

They don't want to give us voting rights but want our money.
I am British Pakistani, but I am also British. Means I have many other countries open for business to me, compared to a resident Pakistani.
But preferred Pakistan because of loyalty to Pakistan.
I don't have that anymore.
I can't trust those thieves ruling the country.
I had no such trust issues when IK was in government. I was buying property,cand depositing money in Roshan digital.
I have withdrawn my money from Roshan digital, and not buying anything in Pakistan anymore

Feeling is mutual

 

[alphapak]

Overseas should continue boycotting remittances, if you know
anyone who sends money back home then get them to use other
means.

 

[mudas777]

The day this crap of the people tola went into the Iqbal family house at night and disrespected the family I have really lost any respect for this subhuman liar generals. If they don't have got care and thought for the country hero's what care these pathetic scavengers are going to give to the common people of the Pakistan.
Charity work my family foundation used to do at back home we have just changed the location elsewhere to the Somalia and Syria. No other country wasted so much time for the foundation to work in other then the Pakistan where every paper takes ages to move and needs palm's to warm. That's the real state of the Pakistan where no industrial wants to invest as every twist and turn are created to fleece the money out. No system, no laws only bull crap from most of the officials.
Until clean elections are held and stability returns to the country who wants to invest in the war torn Islamic Republic of Pakistan occupied by the generals.
Would you send remittances to the country which is at the brink of the default unless its absolutely necessary. Do people are that blind what will happen to the value of the rupee, banking system and the inflation in the country?
Crush PTI is so important with the fake charges, Kangaroo's courts, monkey generals with medals sitting as judges and laws passed by the merasi shameless Nora's family to save there own necks.
Even Argentina got the liberation when they lost the Falkland's war but we lost half of the country but we build more DHA's instead.
No respect for the rule of law and the constitution left, what these generals are going to do next tear down our national flag?

 

[S.Y.A]

What about Pakistani citizens start paying income tax? The day Pakistanis start paying tax there will not be a need for IMF, Saudi loans, Chinese loans etc...

is the tax paid in dollars or rupees?

 

[ziaulislam]

KARACHI: The remittances sent by overseas Pakistani workers dipped month-on-month by 4 per cent and 10pc year-on-year to $2.1 billion in May.

The latest data released by the State Bank of Pakistan (SBP) on Tuesday showed that the country lost $3.7bn in remittances during the first 11 months of FY23 mainly due to a widening exchange rate gap.

The inflows tumbled by 12.98pc to $24.831bn in 11MFY23 compared to $28.489bn in the same period of last fiscal year. The country has been struggling hard to get a $1.1bn tranche from the IMF for a year but the shrinking inflows of remittances could make it more difficult for the country to manage the external account with poor foreign exchange reserves of less than $4bn.


Pakistan received $2.102bn in May compared to $2.198bn in April. It received $2.346bn in May last year.

Currency dealers have consistently been drawing the attention of the government to address the reasons for the decline in remittances but no timely measures were taken to limit the growing role of the grey market which has practically replaced the exchange companies.

The illegal market offers dollar prices more than Rs20 per dollar higher than banking market rate. The exchange companies were facing serious shortage of dollars so the price of greenback gone up open market to come close to the grey market rate. The grey market attracted the remittances.

At the same time, the State Bank permitted importers to arrange dollars for their imports. The importers rushed towards the grey market which further strengthened it and remittances declined due ever increasing dollar rates in the grey market.

The biggest inflow was from Saudi Arabia but was declined by 16.3 per cent to $5.924bn. The 2nd highest inflow was from UAE which was around $4.321bn but it also showed a decline of 19.2 per cent.

Pakistan received 3rd largest amount of remittances from UK which was $3.718bn; it shows a decline of 8 per cent compared to the last year.

Other significant inflows were from USA with $2.824bn (o.9 per cent up), GCC countries $2.918bn (11.5 per cent down) and $2.839bn from EU countries showing a decline of 7.7 per cent.

The labour outflow from Pakistan shows significant increase like previous year but the declining inflows clearly indicate that widening price gap of dollar could be more problematic in the coming months. The dollar officially available at Rs286-287 in the inter-bank market but the grey market offers up to Rs311-313 per dollar.

Published in Dawn, June 14th, 2023

Pakistan lost $3.7bn in remittances

Illegal market offers dollar prices more than Rs20 per dollar higher than banking market rate.

www.dawn.com

Bus IK ko khattum kerna hai

I am sure Army boot lickers here will find this news insignificant

More music to GHQ ears as Shell Pakistan plans to quit from country.

This is nothing
Nawaz sharif will bring far more investment
We are going to build a extra power plant with granteed 30% return no questions asked and garnteed buyout and you will see inshallah people will setup more plants and we will get more investment

Also keep praying for Iran USA war as that will open our CSF like in 2015-2017

 

[Asian.Century]

For Pakistan: Disaster looms amid Drop in Rupee, Foreign Reserves, Remittances & High Inflation

ISLAMABAD: The rudderless ship of economy is heading towards a disaster owing to the persistent drubbing of the rupee against the dollar in the wake of dwindling foreign exchange reserves and remittances, and possibility of a sharp rise in inflationary pressures.

Now such depreciation of the exchange rate will result in an increase in the POL prices and the same will apply in case of an increase in the fuel price adjustments (FPA) in the wake of furnace oil and imported RLNG becoming dearer in months ahead.

Headline inflation as well as core inflation is expected to further go up so the policy rate would also be increased under the IMF conditions.

A doomsday scenario is looming large with the possibility of heading towards steep “stagflation” on account of lowering GDP growth and an upsurge in CPI-based inflation in months ahead. Its ultimate victim would be the poor segments of the society because stagflation would push up poverty and unemployment.

Persistent decline in the exchange rate has crossed the mark of Rs300 against the US dollar in the interbank rate owing to the increased demand for dollars for clearance of imports, payment of dividends, and materializing structural benchmark condition of the IMF under $3 billion Standby Arrangement (SBA) for keeping the difference between interbank and open market not more than 1.25 percent.

The structural benchmark has now breached, as this difference stands at around 4.5 to 5 percent. But the State Bank of Pakistan (SBP) is not ready to say anything on record. The same is the situation related to the Ministry of Finance after assumption of power by the caretaker setup. When official spokesman for the SBP was inquired about continuous depreciation of exchange rate, the response was “no comments”.

At least, during the PDM-led regime, the then finance minister Ishaq Dar had always preferred to show his muscles against speculators but now no one seems in the mood to comment on the prevailing situation.

The Ministry of Finance has issued just one statement so far stating that the caretaker Minister for Finance Dr Shamshad Akhtar had arrived in the Q Block and assumed the charge.

The caretaker PM has selected Dr Shamshad Akhtar as Minister for Finance and Dr Waqar Masood as Advisor to PM on Finance with the status of minister of state but so far no division of work has been done to assign the responsibilities.

The collective responsibility is no more solution because it will not help determine the Key Performance Indicators (KPIs). So, there is a need to distribute the responsibilities in order to hold someone accountable at the end of the day.

In the prevailing difficult economic situation, the current account deficit witnessed rebounding and stood at $1 billion for July 2023 in the wake of reduced exports, remittances and increased imports.

The widening gap between interbank and open market rates will further reduce the possibility of luring remittances. On the internal front, the FBR’s revenue collection has also lagged behind than the required growth to materialize the annual target of Rs9.4 trillion.

Disaster looms amid drop in rupee, reserves, remittances

ISLAMABAD: The rudderless ship of economy is heading towards a disaster owing to the persistent drubbing of the rupee against the dollar in the wake of dwindling foreign exchange reserves and...

www.thenews.com.pk

 

[waz]

For Pakistan: Disaster looms amid Drop in Rupee, Foreign Reserves, Remittances & High Inflation

ISLAMABAD: The rudderless ship of economy is heading towards a disaster owing to the persistent drubbing of the rupee against the dollar in the wake of dwindling foreign exchange reserves and remittances, and possibility of a sharp rise in inflationary pressures.

Now such depreciation of the exchange rate will result in an increase in the POL prices and the same will apply in case of an increase in the fuel price adjustments (FPA) in the wake of furnace oil and imported RLNG becoming dearer in months ahead.

Headline inflation as well as core inflation is expected to further go up so the policy rate would also be increased under the IMF conditions.

A doomsday scenario is looming large with the possibility of heading towards steep “stagflation” on account of lowering GDP growth and an upsurge in CPI-based inflation in months ahead. Its ultimate victim would be the poor segments of the society because stagflation would push up poverty and unemployment.

Persistent decline in the exchange rate has crossed the mark of Rs300 against the US dollar in the interbank rate owing to the increased demand for dollars for clearance of imports, payment of dividends, and materializing structural benchmark condition of the IMF under $3 billion Standby Arrangement (SBA) for keeping the difference between interbank and open market not more than 1.25 percent.

The structural benchmark has now breached, as this difference stands at around 4.5 to 5 percent. But the State Bank of Pakistan (SBP) is not ready to say anything on record. The same is the situation related to the Ministry of Finance after assumption of power by the caretaker setup. When official spokesman for the SBP was inquired about continuous depreciation of exchange rate, the response was “no comments”.

At least, during the PDM-led regime, the then finance minister Ishaq Dar had always preferred to show his muscles against speculators but now no one seems in the mood to comment on the prevailing situation.

The Ministry of Finance has issued just one statement so far stating that the caretaker Minister for Finance Dr Shamshad Akhtar had arrived in the Q Block and assumed the charge.

The caretaker PM has selected Dr Shamshad Akhtar as Minister for Finance and Dr Waqar Masood as Advisor to PM on Finance with the status of minister of state but so far no division of work has been done to assign the responsibilities.

The collective responsibility is no more solution because it will not help determine the Key Performance Indicators (KPIs). So, there is a need to distribute the responsibilities in order to hold someone accountable at the end of the day.

In the prevailing difficult economic situation, the current account deficit witnessed rebounding and stood at $1 billion for July 2023 in the wake of reduced exports, remittances and increased imports.

The widening gap between interbank and open market rates will further reduce the possibility of luring remittances. On the internal front, the FBR’s revenue collection has also lagged behind than the required growth to materialize the annual target of Rs9.4 trillion.

Disaster looms amid drop in rupee, reserves, remittances

ISLAMABAD: The rudderless ship of economy is heading towards a disaster owing to the persistent drubbing of the rupee against the dollar in the wake of dwindling foreign exchange reserves and...

www.thenews.com.pk

According to the PDM supporters the economy is doing well and was far worse under Imran.

 

[Olympus81]

Pakistan will see continued downward trend of remittances YoY. What was borrowed from IMF will eventually be offset by the remittances that has been lost.

Roshan Digital Account is zero.

Short term the duffers will resort to fire sale of State Enterprises. But again that’ll be offset by continued losses in remittances.

End of the day, the confidence is lost. Nothing short of free and fair elections, establishment going back to the barracks and a state of political stability can salvage the situation but who’ll knock sense into them.

 

[Abdul Rehman Majeed]

IK did not fix anything.

IK could not even get the IMF loan for 4 years to stabilize the economy.

PDM got the IMF loan in a matter of months.