Summary State Bank Governor Jameel Ahmad says Pakistan's remittances will surpass $41 billion this fiscal year despite Middle East tensions, with banks replacing government incentive subsidies.
KARACHI (Web Desk) – Pakistan's remittances are expected to exceed $41 billion during the current fiscal year despite instability in the Middle East, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Friday.
Addressing a press conference in Karachi, Ahmad said the central bank had initially estimated that regional tensions could reduce remittance inflows by around $1 billion, but transfers remained resilient. He credited simplified transfer procedures and the elimination of remittance charges for maintaining strong inflows through formal banking channels.
The SBP Governor announced that the government would no longer subsidise remittance incentive schemes. Instead, commercial banks will bear the cost, a move he said would not affect overseas Pakistanis. He added that banks would benefit by strengthening their trade finance capacity through higher remittance volumes.
Ahmad said Pakistan's imports for the current fiscal year stand at around $70 billion, similar to 2022 levels. However, unlike 2022, when the State Bank injected $8 billion into the foreign exchange market, it has purchased $8 billion from the market this year, reflecting improved external stability.
He noted that annual remittances have increased from $23 billion to around $40 billion, even though the number of Pakistanis leaving for overseas employment has remained broadly unchanged.
The Governor said Pakistan's trade deficit should be reduced by boosting exports rather than restricting imports. He expressed confidence that the country's economic growth would continue, exports would improve, and Pakistan's sovereign credit rating is expected to strengthen.
