ISLAMABAD: In a positive development for Pakistan’s economy, the State Bank of Pakistan (SBP) has hinted that remittances for October 2024 are expected to reach or surpass $3 billion. This trend, revealed during the recent post-Monetary Policy Committee (MPC) briefing, is poised to significantly reduce the current account deficit to negligible levels.
The anticipated remittance figures will be officially released within the week, but preliminary data shows a remarkable 39% increase in remittances during the first three months of the current fiscal year (July-June). Notably, this surge is occurring without the usual boost from the Eid, underscoring the resilience of financial inflows from overseas Pakistanis.
Analysts attribute this sustained momentum to a stable exchange rate and the successful crackdown on informal remittance channels, particularly the hundi system. The influx of remittances through official channels, including banks and regulated exchange companies, has fostered greater trust in the financial system and encouraged overseas workers to send money through formal means.
As remittances continue to flow robustly, their impact on the current account balance cannot be overstated. With the expected October figures, the SBP’s projections indicate a promising outlook for Pakistan’s economic stability, providing essential support to households and contributing to the country’s foreign exchange reserves.
The forthcoming release of the official remittance numbers will be closely monitored by economists and policymakers alike, as the figures could signal a pivotal shift in the country’s economic landscape.
