Islamabad: In a positive development for the Pakistani economy, the State Bank of Pakistan (SBP) has hinted that remittances for October 2024 are expected to reach or exceed $3 billion. This trend, revealed during the Monetary Policy Committee’s recent briefing, is expected to significantly reduce the current account deficit to negligible levels.
The expected remittance figures are scheduled to be officially published during the week, but preliminary data shows a significant increase in remittances by 39% during the first three months of the current fiscal year (July-June). It is worth noting that this increase occurs below the usual Eid payment, which confirms the resilience of financial flows from Pakistanis abroad.
Analysts attribute this continued momentum to the stability of the exchange rate and the successful crackdown on informal remittance channels, especially the hundi system. The flow of remittances through formal channels, including banks and regulated exchange houses, has strengthened confidence in the financial system and encouraged workers abroad to send money through formal means.
As remittance flows continue to be strong, their impact on the current account balance cannot be overestimated. With the figures expected for October, the State Bank of Pakistan’s forecasts indicate promising prospects for economic stability in Pakistan, providing basic support to families and contributing to the country’s foreign exchange reserves.
The upcoming release of official remittance figures will be closely watched by economists and policymakers alike, as the numbers could signal a pivotal shift in the country’s economic landscape.
