A dramatic drop in international employees’ remittances alerts an additional blow to the economic system as Islamabad seeks an IMF bailout.
Remittances despatched dwelling by Pakistanis working overseas fell to $27bn for the fiscal 12 months 2023, in contrast with $31.3bn a 12 months earlier, the nation’s central financial institution mentioned on Monday.
Remittances for June slumped to $2.2bn from $2.8bn a 12 months earlier, central financial institution information confirmed. The remittances have been primarily sourced from Saudi Arabia ($515.1m), the UK ($343m), the United Arab Emirates ($324.7m) and america ($272.3m).
Based on the World Financial institution final 12 months, Pakistan was the world’s sixth high recipient of remittances in 2022, behind India, Mexico, China, the Philippines and Egypt, though Tonga, Lebanon and Samoa are most depending on cash despatched dwelling from overseas as a proportion of GDP.
Pakistan’s financial disaster
The drop alerts one other blow to Pakistan’s economic system which is going through its worst disaster since gaining independence from Britain in 1947.
Years of economic mismanagement, a world power disaster and extreme flooding have battered the economic system, leading to a slew of strict financial measures imposed by the Worldwide Financial Fund (IMF) as Pakistan’s central financial institution appears to safe a bailout.
The $3bn short-term financial package from the IMF is topic to approval by its board on July 12.