Posted 1/15/2024, 2:55:32 AM
Remittances to Pakistan Drop 10%, Raising Economic Concerns
- Remittance inflows to Pakistan have declined in 2023 compared to previous years, projected to fall 10% by World Bank
- Lower remittances widen current account deficit and put pressure on Pakistan's limited foreign exchange reserves
- Multiple factors contribute including political instability, real estate slowdown, global economic weakness, and policies in remittance source countries
- Informal remittance channels growing, exacerbating exchange rate volatility
- Urgent measures needed to bolster formal remittance channels and foreign exchange reserves to prevent balance of payments crisis