Remittances sent home by overseas Pakistani workers fell to over a two-year-low as the dollar cap — imposed to stabilise the rupee against the dollar by the government earlier — prompted illegal transfers through hundi, hawala, and other channels.
Data released by the State Bank of Pakistan (SBP) showed that the remittances fell to $1.9 billion in January 2023, compared to $2.1 billion in December and $2.18 billion in January 2022. In May 2020 remittance stood at $1.865 billion.
Remittances dropped 9.9% month-on-month and 13.1% year-on-year, the central bank data showed. With a cumulative inflow of $16 billion during the first seven months — July to January — of FY23, the remittances decreased by 11% compared to the same period last year.
The dollar cap was removed by the end of January as per International Monetary Fund (IMF) conditions to pave the way for the release of the critical $1.1 billion loan tranche.
