Rising remittances, falling exports

The Express Tribune published an opinion column by a former vice president of KCCI and an international trade expert, arguing that rising remittances are masking weaker exports. August 2026 inflows from workers abroad totalled $3.66 billion, a rise of 16.5% year-on-year, and reached $7.29 billion for July and August combined. Exports for those two months came to $5.46 billion, while the trade deficit widened 18% to $7.12 billion.

The writer argues that remittances cannot permanently replace exports, investment and productivity, and that high energy costs, taxes, financing and logistics charges are squeezing exporters' margins. He opposes export rebates and freight subsidies, calling instead for lower non-development spending and better ports, storage and transport. The column also cites State Bank data showing liquid foreign exchange reserves of around $21.72 billion as of September 4.

The column also treats the Middle East tensions and disrupted shipping routes as an added risk, with Brent crude above $100 a barrel. The writer argues that remittances should be channelled into productive investment in exporting industries, logistics and infrastructure. The writer's central message is that exports are a necessity even as remittances continue to help.