14 Feb 2023 By Know Muslim
As a result of the dollar cap, which the government earlier established to stabilise the rupee's value against the dollar, illegal transfers through hundi, hawala, and other channels reached a more than two-year low.
Remittances decreased to $1.9 billion in January 2023 from $2.1 billion in December and $2.18 billion in January 2022, according to data made public by the State Bank of Pakistan (SBP).
The central bank's report revealed a 9.9% monthly decline and a 13.1% annual decline in remittances. The total amount of remittances received over the first seven months of FY23, from July to January, totaled $16 billion, which represents an 11% decline from the same time previous year.
In accordance with IMF requirements, the dollar cap was lifted by the end of January to allow for the release of the crucial $1.1 billion loan payment.
Saudi Arabia ($407.6 million), the United Arab Emirates ($269.2 million), the United Kingdom ($330.4 million), and the United States of America ($213.9 million) were the primary sources of remittances in January 2023.
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