Business

Workers’ remittances increase by 11.5% in October

Published

1 year ago

Farwa

SBP says inward remittances stood at $8.8 billion from Jul-Oct.
Remittances increased by 9.6% on YoY basis.
Analyst credits crackdown against hundi/hawala for increase.

KARACHI: The remittances from the overseas workers were recorded at $2.5 billion in the month of October making it an increase of 11.5% month-on-month basis, said the State Bank of Pakistan (SBP) in a statement on Friday.

“In terms of growth, during October 2023, remittances increased by 11.5% on month on month and 9.6% on year on year basis,” said the central bank.

The central bank also shared that in the first four months of the ongoing fiscal year, the inward remittances stood at $8.8 billion.

Workers’ remittances increase by 11.5% in October

As per the SBP, out of the $2.5 billion, Pakistani workers from Saudi Arabia sent $616.8 million, United Arab Emirates was second with $473.9 million, remittances from United Kingdom were recorded at $330.2 million and $283.3 million was sent from the United States.

Former economic adviser to the Ministry of Finance Dr Khaqan Najeeb credited the closing of the exchange rate between the open and interbank markets and curbing of illegal exchange for the increase in remittances.

“Closing of the exchange rate between the open market and interbank has helped remittances flow through the formal sector increasing the October remittances by nearly $300 million compared to last month,” said Dr Najeeb.

The economist states that the recent “enforcement measures” undertaken by the government against the illegal exchange market had helped bring down the demand for smuggling for dollarisation and also control hundi/hawala.

“This has all helped channelise remittances through the interbank,” said Dr Najeeb. He added that the increase in remittances from the Middle East was an indicator that hundi/hawala was declining as these countries have a higher percentage of the hundi/hawala business.

“This overall is contributing to the improvement in the remittances in October,” said the economist.

Business

The NORINCO Group is invited by CM Sindh to explore opportunities.

Published

22 hours ago

Farwa

Chinese companies have been invited by Sindh Chief Minister Syed Murad Ali Shah to visit Karachi and other regions of Sindh Province in order to observe the quickly growing businesses and investigate prospects in fields like clean energy, infrastructure development, and public transit projects.

Speaking in Beijing to a delegation headed by the chairman of NORINCO International Co., Ltd., he stated that all facilities required would be provided by the governments of Sindh Province and Pakistan.

With assistance from NORINCO International, the Sindh Chief Minister stated that the Provincial Government will firmly urge North Vehicle and BeiBen to think about setting up a Vehicle Assembly Plant in the Dhabeji Special Economic Zone.

Business

A deal with Pakistan to fight financial crimes has been approved by the Saudi cabinet.

Published

22 hours ago

Farwa

In order to strengthen collaboration in the fight against money laundering, terrorist financing, and associated crimes, the Saudi Press Agency announced this week that the Saudi cabinet, led by Crown Prince Mohammed bin Salman, had approved a memorandum of understanding (MoU) with Pakistan’s Financial Monitoring Unit (FMU).

Due to its severe money laundering and terrorism funding issues in recent years, Pakistan was added to the Financial Action Task Force’s (FATF) grey list in June 2018.

The nation was taken off the gray list in October 2022 after enacting extensive measures to fortify its financial system.

The FMU is Pakistan’s financial intelligence unit, created under the Anti-Money Laundering Act of 2010 and tasked with collaborating with foreign partners and evaluating reports of suspicious transactions.

According to the SPA, “the cabinet approved a memorandum of understanding regarding cooperation in exchanging investigations related to money laundering, terrorist financing, and related crimes between the Financial Monitoring Unit in the Islamic Republic of Pakistan and the General Department of Financial Investigation at the Presidency of State Security in the Kingdom of Saudi Arabia.”

The MoU is an indication of Saudi Arabia and Pakistan’s growing strategic partnership. A significant Pakistani diaspora resides in the Kingdom, and numerous Pakistani businesses have established a presence there.

Saudi Arabia has been a key supporter of Pakistan’s economy, bolstering its reserves with substantial deposits in the State Bank of Pakistan and offering deferred oil payment facilities.