ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb on Wednesday said that foreign remittances inflow would cross $35 billion in the ongoing fiscal year (FY24-25).
He said this while addressing the Economic Coordination Committee (ECC) in Islamabad. He reiterated that the economy of the country has been showing positive signs.
He remarked, that the economy has taken the right path due to the crucial and much-needed steps taken by the government.
“The current account has recorded a surplus after nearly 10 years while the export sector is also on the right path and inflation too, has come down to record level in six years,” he said.
The minister further expressed hope that the foreign remittances would surpass $ 35 billion this year. He added the policy rate of 13% was also essential for the economy.
Aurangzeb counting on the steps taken so far and the effects they produced, said the confidence of the business community has strengthened with the sale of cement increasing by five percent.
The Finance Minister said Roshan Digital Account has touched $ 9 billion, recording 31 percent more flows while the inflation rate has also reduced to 4.9%.
Pakistan’s clampdown against the illegal foreign exchange trade has significantly improved remittances, Bloomberg reported on Tuesday.
Remittances rose by 34% to $14.8 billion in the five months through November from a year ago, the report said, citing the State Bank of Pakistan (SBP)’s data.
Additionally, it noted that the rupee had gained 2% this year and is considered “among the best-performing emerging-market currencies”, propelled by the International Monetary Fund (IMF) loan programme and remittances.
Pakistan received $11.85bn remittances during July-Oct, making an average of $2.962bn per month. The country received $3.052bn in October and $2.859bn in September, showing a higher trend of remittances.
The country received $30.25bn in FY24, witnessing a decline of 13.3% compared to the preceding year.
Financial experts believe the higher remittances result from exchange rate stability and a crackdown against illegal trading of currencies.
