LAHORE
\nAs the remittances to Pakistan have hit a record high in in October The All Pakistan Business Forum has said that foreign flows are crucial which can support the country\u2019s account balance amidst low volumes of foreign direct investment (FDI) and nominal growth of exports.
\nAPBF President Syed Maaz Mahmood observed that the inflows of workers\u2019 remittances sent home by overseas Pakistanis remained robust, reaching a four-month high of over $3 billion in October 2024, with significant increases from the United Arab Emirates (UAE) and United Kingdom (UK).
\nThis rise in remittances is expected to keep the current account near breakeven and help the rupee remain stable against the US dollar.
\nQuoting the data of State Bank of Pakistan (SBP), he said that the inward remittances surged by 24%, reaching $3.05 billion in October 2024 compared to $2.46 billion in the same month last year. October\u2019s inflows also increased by 7% compared to $2.86 billion in September 2024.
\nCumulatively, remittances rose by 35% to $11.85 billion in the first four months of the current fiscal year (2024-25), up from $8.79 billion during the same period last year.
\nFinance Minister and SBP governor project over 12% growth in remittances, which could hit a record high of $34 billion for the full fiscal year 2024-25, up from $30.25 billion in FY24.
\nAPBF Chairman Ibrahim Qureshi noted that a 31% increase in inflows from the UAE seems linked to the government\u2019s clampdown on illegal hawala-hundi networks. Meanwhile, a remarkable 30% rise in remittances from the UK is attributed to improved labour market conditions and economic recovery in the region.
\nIbrahim Qureshi explained that more non-resident Pakistanis are now using formal channels like banks and exchange companies to send remittances home, leading to sustained growth in these inflows.
\nThis shift was further motivated by the government\u2019s collaboration with the SBP and law enforcement agencies to dismantle illegal currency markets and curb smuggling of the US dollar to neighbouring countries over the past year.
\nSyed Maaz Mahmood said that recent incentives by the central bank for banks and exchange companies to attract higher remittances have also significantly boosted inflows. He pointed out that a substantial number of Pakistanis are going abroad for work, playing a vital role in the rising remittance inflows. Approximately 2.2 million Pakistanis have taken up jobs overseas in the last 33 months, raising the total number of expatriates to 13.8 million.
\nHe projected that remittance inflows might continue to grow, spurred by monetary easing (interest rate cuts) and recovery in global economic activity. However, inflows could face challenges if the US implements proposed taxes on outward remittances, or if oil prices fall, impacting economies in the Gulf Cooperation Council (GCC) region where most Pakistani expatriates are employed.
\nRemittances from the UAE surged by 31%, reaching $621 million in October 2024 compared to $474 million in the same month last year. Non-resident Pakistanis in the UK sent 30% more remittances, totalling $429 million compared to $330 million a year earlier.
\nAPBF President said that remittances are a major source of non-debt-creating inflows that Pakistan relies on to maintain its foreign exchange reserves. Pakistan has a looming deadline to repay a substantial amount of debt, much of which relies on debt rollovers.
\nHe said that remittances can help not only in financing the deficit in import payments but also in foreign debt repayments, suggesting the government to focus on structural reforms, which can revive Pakistan\u2019s economic growth with major focus on incentives for overseas Pakistanis workers.<\/p>\n","protected":false},"excerpt":{"rendered":"
LAHORE As the remittances to Pakistan have hit a record high in in October The All Pakistan Business Forum has said that foreign flows are crucial which can support the country\u2019s account balance amidst low volumes of foreign direct investment (FDI) and nominal growth of exports. APBF President Syed Maaz Mahmood observed that the inflows […]<\/p>\n","protected":false},"author":2,"featured_media":366181,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-442844","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n