AIRLINK 189.36 Increased By ▲ 1.33 (0.71%)
BOP 11.10 Decreased By ▼ -0.76 (-6.41%)
CNERGY 7.28 Decreased By ▼ -0.26 (-3.45%)
FCCL 36.65 Decreased By ▼ -1.14 (-3.02%)
FFL 14.95 Decreased By ▼ -0.29 (-1.9%)
FLYNG 26.19 Increased By ▲ 0.66 (2.59%)
HUBC 130.89 Increased By ▲ 0.74 (0.57%)
HUMNL 13.47 Decreased By ▼ -0.14 (-1.03%)
KEL 4.28 Decreased By ▼ -0.07 (-1.61%)
KOSM 6.08 Decreased By ▼ -0.09 (-1.46%)
MLCF 45.94 Increased By ▲ 0.26 (0.57%)
OGDC 201.86 Decreased By ▼ -4.57 (-2.21%)
PACE 6.12 Decreased By ▼ -0.26 (-4.08%)
PAEL 38.36 Decreased By ▼ -1.95 (-4.84%)
PIAHCLA 16.73 Decreased By ▼ -0.22 (-1.3%)
PIBTL 7.94 Decreased By ▼ -0.09 (-1.12%)
POWER 9.86 Decreased By ▼ -0.17 (-1.69%)
PPL 173.46 Decreased By ▼ -5.38 (-3.01%)
PRL 34.73 Decreased By ▼ -1.63 (-4.48%)
PTC 23.95 Decreased By ▼ -0.44 (-1.8%)
SEARL 101.74 Decreased By ▼ -1.42 (-1.38%)
SILK 1.07 No Change ▼ 0.00 (0%)
SSGC 32.70 Decreased By ▼ -3.54 (-9.77%)
SYM 17.93 Decreased By ▼ -0.30 (-1.65%)
TELE 8.14 Decreased By ▼ -0.24 (-2.86%)
TPLP 12.02 Decreased By ▼ -0.14 (-1.15%)
TRG 67.40 Increased By ▲ 0.07 (0.1%)
WAVESAPP 11.80 Decreased By ▼ -0.21 (-1.75%)
WTL 1.52 Decreased By ▼ -0.05 (-3.18%)
YOUW 3.90 Increased By ▲ 0.01 (0.26%)
BR100 11,819 Decreased By -87.9 (-0.74%)
BR30 35,000 Decreased By -554.1 (-1.56%)
KSE100 112,085 Decreased By -478.8 (-0.43%)
KSE30 34,946 Decreased By -148 (-0.42%)

KARACHI: Workers’ remittances posted 5 percent growth during February compared to January as cap on exchange rate lifted to enhance formal inflows.

According to State Bank of Pakistan (SBP), workers’ remittances recorded inflows worth $ 2 billion during February 2023 compared to $1.89 billion in January 2023, showing an increase of $94 million.

However, on a year-on-year basis, home remittances decreased by 9.5 percent in February 2023 as against February 2022, in which $2.19 billion remittances were arrived.

The inflows of workers’ remittances were on decline since September 2022 and monthly inflows reached below $2 billion in January 2023 due to the massive difference in the exchange rate of the formal and informal market.

In order to streamline the exchange market and enhance the home remittances inflows, the SBP on January 26, 2023 lifted the unofficial cap on the exchange rate. After the removal of the cap, the Pak Rupee depreciated by 9.61 percent in a single day and the exchange rate in the interbank market closed at Rs 255.43 to the dollar up from Rs 230.89.

The increase in the formal exchange rate encourages the overseas Pakistanis to send remittances to their beloveds through legal channels as they are getting good exchange rate in the formal market after the removal of cap.

Cumulatively, workers’ remittances declined by 10.8 percent during the first eight months of this fiscal year (FY23). The country received inflow amounted to $ 18 billion during July-Feb of FY23 down from $20.184 billion is same period of last fiscal year (FY22), depicting a declined of $2.18 billion

During the first eight months of this fiscal year, major inflows of home remittances were arrived from Saudi Arabia, United Arab Emirates (UAE), United Kingdom (UK) and United States of America (USA) and EU countries.

Saudi Arabia ranked first with $4.346 billion inflows. In addition, home remittance worth $1.972 billion, up by 3 percent, arrived from the USA, $2.631 billion (down 5.7 percent) from the UK and $3.197 billion, fell by 15.5 percent, from the UAE during July-Feb of FY23.

Copyright Business Recorder, 2023

Comments

Comments are closed.

Mazhar Abbas Mar 13, 2023 10:24am
However, on a year-on-year basis, home remittances decreased by 9.5 percent in February 2023 as against February 2022, in which $2.19 billion remittances were arrived. This should be headline........
thumb_up Recommended (0)