Rise in Pakistani Foreign Remittances by $2 billion

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Bankers and money changers have said that if the inflow of foreign exchange through banking channels remained high in September, remittances could increase by up to $2 billion.

According to the reports, currency experts say that the inflow of foreign exchange through banking channels is high for at least four reasons, forcing Pakistanis abroad to send their money only through banks.

Malik Bostan, president of the Forex Association of Pakistan, said the closure of commercial flights had forced all transmitters to send money through banks.

He said that due to the coronavirus, the movement of Pakistanis abroad was restricted and as a result, a definite process was started towards formal channels (banks).

Malik Bostan said he used to bring thousands of dollars in his bag instead of sending them through the banking system.

“The current account surplus in July and August strengthened the exchange rate and will continue to support the country’s economy,” he said.

Malik Bostan added that exchange companies were depositing more dollars in banks while open markets were trading almost unilaterally as buyers traded only 10 per cent while the rest were sellers.