SBP Governor credits remittances for reserve build-up, lowest current account deficit

State Bank of Pakistan Governor Jameel Ahmad said steady remittances from overseas Pakistanis had helped the nation post its smallest current account shortfall and rebuild its foreign currency reserves. Speaking to the diaspora at the RDA and Remittance Roadshow in London, he thanked overseas Pakistanis for their continued contribution to the external account. Mettis Link News reported that the Governor noted remittances reached a record $41.6bn last year.

The SBP projects remittances to climb to $44bn during the current fiscal year. If that target is met, the current account deficit could be kept within 0-1% of GDP. Mettis Link News reported that the current account gap contracted to $98 million in August, the narrowest monthly figure since April. Stronger inflows counterbalanced a persistently wide trade gap, the report said.

Workers' remittances totalled $3.66 billion in August, a 16.5% rise from $3.14 billion a year earlier and slightly above July's $3.63 billion. Eleven of the previous thirteen months recorded inflows above $3.4 billion.