KARACHI: Remittances sent by overseas Pakistanis rose to $3.9bn in the first quarter. The amount is equal to foreign exchange reserves held by the State Bank of Pakistan as reported last week. The grim situation of foreign exchange reserves has made remittance inflows critical for shoring up foreign exchange reserves.
Total liquid foreign reserves held by the country stood at $9,127.6m on October 10. Foreign reserves held by the SBP stood at $3,953.6m while net foreign reserves held by banks other than SBP stood at $5,174.0m.
Though in absolute terms, export proceeds are higher than remittances, trade imbalances consume proceeds from this source. The State Bank reported on Friday that remittances for July-September increased by 9.14pc to $3.927bn. In the same period last year, remittances were $3.6bn.
Remittances in September were higher by $43m compared to August, but these were 13pc more than the remittances received during the same month last year. The monthly average also rose to $1.309bn while it was $1.199bn during the first quarter of last year. The State Bank last week issued weekly position of the foreign exchange reserves of the SBP as well as commercial banks.
The reserves of the State Bank are falling sharply despite first tranche of IMF and loans from commercial banks. However, commercial banks have created a history by holding dollars more than the State Bank. Commercial banks succeeded to maintain their gradual increase in the reserves which rose to $5.174bn, 31pc higher than the State Bank’s reserves.
Pakistan hopes to receive more funds from IMF, World Bank and Islamic Development Bank. internews