KARACHI: Inflows of workers’ remittances posted an increase of over 5 percent in September 2023 compared to August 2023, mainly due to crackdown on the Hawala/Hundi.
The State Bank of Pakistan (SBP) on Tuesday reported that Pakistan received workers’ remittances amounted to $ 2.206 billion in September 2023 compared to $2.094 billion in August 2023, depicting an increase of 5.3 percent or $112 million.
Remittance inflows during Sep 2023 were mainly sourced from Saudi Arabia worth $538.2 million, United Arab Emirates amounted to $400 million, United Kingdom $311.1 million and United States of America $263.4 million.
Pakistan’s remittances clock in at $2.2bn in September, 5.5% higher on monthly basis
Analysts said a large number of Pakistani expats were sending money through Hawala/Hundi as there was a huge gap between the interbank and grey market exchange rates during the initial two months of this fiscal year.
However, after the strict action by the law enforcement agencies against the illegal currency dealers, the volatility reduced and accordingly Pak Rupee is appreciating gradually in the interbank and open currency market.
During the past month, Pak Rupee has recovered 9 percent since it fell to a record low of 307.1 on September 5 in the domestic currency market, they informed. Today Pak Rupee closed at 280.51 to the dollar. The crackdown on currency against the Hawala/Hundi dealers also helped to increase the remittances by 5 percent MoM in September, they added.
Commutatively, during the first quarter of this fiscal year (FY24) inflows of home remittances sharply declined 20 percent or $1.57 billion. Home remittances worth $ 6.33 billion were received during July-Sep of this fiscal year as against $ 7.90 billion in the same period of last fiscal year (FY23).
During the first quarter, inflows from all major corridors witnessed a downward trend. Home remittance from Saudi Arabia declined by 22 percent to $1.516 billion in July-Sep of this fiscal year, down from $1.946 billion in the same period of last fiscal year.
Copyright Business Recorder, 2023
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