KARACHI: Remittances from overseas workers in Pakistan declined by 19% year-on-year to $2.0 billion in December 2022 from $2.52 billion recorded in the same month of the previous fiscal year FY2022, the central bank said on Friday. .
The State Bank of Pakistan (SBP) said remittances declined by 11 percent year-on-year in the first half of fiscal 2023 (July to December).
During Dec 2022, workers’ remittances recorded an inflow of US$2.0 billion. For detail see https://t.co/rPOvn9Dr8Nhttps://t.co/7XBd4uOcHC pic.twitter.com/wxEZKq9zbk
— SBP (@StateBank_Pak) January 13, 2023
Pakistan’s central bank’s foreign exchange reserves fell by 22.11 percent to the lowest level since February 2014, posing a serious challenge to the country’s import financing.
The announcement comes at a time when the country is in dire need of foreign aid to reduce its current account deficit as well as ensure sufficient reserves to meet debt obligations.
Combined with another $5.8 billion held by commercial banks, the country has $10.2 billion in reserves – barely covering three weeks of imports.
During the week ended January 6, the central bank’s foreign exchange reserves fell by $1,233 million, or 22.12 percent, to $4,343.2 million, a statement from the central bank said, down from the previous week’s reserves of $5,576.5 million. are
Pakistan’s economy has been battered by an emerging political crisis, with the rupee falling and inflation at a decade-high, but devastating floods and a global energy crisis have only worsened the situation.
Despite the government’s recent compression measures, Pakistan’s goods import bill was $5.1 billion a month in both November and December, according to the country’s Bureau of Statistics. Its main imports are energy-related fuels.
