With 7.3% monthly decline, Pakistan receives $2b in remittances

KARACHI: With a decrease of 7.3 per cent, Pakistan received a total of $2 billion in remittances in July 2023.

According to a statement issued by the State Bank of Pakistan (SBP) on Thursday, Pakistan witnessed a significant 19.3 per cent annual decline in remittances.

According to the SBP, remittances from a few countries have increased. Pakistan received $486.7 million from Saudi Arabia, $315.1 million from the United Arab Emirates, $305.7 million from the United Kingdom, and $238.1 million from the United States in July.

Remittances are a key source of foreign exchange for Pakistan, which faces a chronic current account deficit and external debt pressures.

Read more: Pakistan’s foreign exchange reserves decrease by $32 million

Earlier, the SBP said that foreign exchange reserves held by the central bank fell $32 million to $8.1538 billion

The country has received financial support from various sources, including the International Monetary Fund (IMF), which resumed its $6 billion loan programme in March after a year-long hiatus.

Pakistan has also secured loans and grants from China, Saudi Arabia, the World Bank and the Asian Development Bank to shore up its reserves and meet its balance of payments needs.

However, the country still faces a large external financing gap and has to repay about $10.6 billion in debt and interest payments in the fiscal year 2023, which started on July 1, according to the IMF.