Remittances up 26% YoY in January - are USD finally pouring?

News Image

A A H Soomro | February 12, 2024 at 11:47 AM GMT+05:00

0:00

February 12, 2024 (MLN): Any economic good news after the recent elections is welcome. Pakistan's January's remittances flow has seen a handsome growth of 26% to clock in at $2.4 billion. Though similar to last month's but much better than even the best year of 2022's January numbers of $2.2bn. 

Economic stability is gradually kicking in as parallel grey markets for USD are diminishing. With extremely tight monetary and fiscal policies, demand for foreign currency as store of value is decreasing as PKR has remained stable for nearly a year (March 23 and Feb's 24's interbank rate of PKR 280/USD).

Caretakers - coupled with SIFC's pressure - has sent clear warnings to exchange companies, speculators and investors as well. 

Consolidation of the exchange company along with incentives given by govt on increased remittances to Banking sector is helping country remain afloat.

Although the external debt repayments requirement warrant much higher export growth, debt elongation and NPV positive foreign investment nevertheless currency markets are in balance. 

With 20% risk-free returns, capital is away from USD (yet). Keep up the pace with IMF reforms, and stability would continue.

The Current Account may need to remain near balanced or max 1-2% of GDP to attain optimum balance of stability, growth, debt deleveraging and tax widening. Long way but every month matters.

The author is an independent economic analyst and writes on Twitter and Linkedin.

Related News

Name Price/Vol %Chg/NChg
KSE100 163,657.53
275.65M
-0.48%
-787.19
ALLSHR 99,856.83
1,177.83M
-0.41%
-406.39
KSE30 50,081.10
65.97M
-0.77%
-386.05
KMI30 238,319.79
34.25M
-0.44%
-1061.34
KMIALLSHR 65,859.47
320.00M
-0.43%
-283.97
BKTi 46,239.35
36.92M
-0.80%
-370.63
OGTi 31,956.02
7.34M
-0.90%
-289.31
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 106,375.00 109,470.00
106,375.00
-2070.00
-1.91%
BRENT CRUDE 60.54 61.11
60.52
-0.52
-0.85%
RICHARDS BAY COAL MONTHLY 80.50 0.00
0.00
-0.75
-0.92%
ROTTERDAM COAL MONTHLY 93.00 0.00
0.00
-0.15
-0.16%
USD RBD PALM OLEIN 1,085.00 1,085.00
1,085.00
0.00
0.00%
CRUDE OIL - WTI 56.49 57.09
56.46
-0.97
-1.69%
SUGAR #11 WORLD 15.85 15.87
15.58
0.16
1.02%

Chart of the Day


Latest News
October 17, 2025 at 12:09 PM GMT+05:00

Gold surges to new peak at Rs456,900 per tola


October 17, 2025 at 11:54 AM GMT+05:00

PACRA maintains stable outlook on Mughal Iron & Steel


October 17, 2025 at 11:43 AM GMT+05:00

Pakistan, Saudi Arabia strengthen investment links



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg