According to figures issued by the central bank on Thursday, remittances to Pakistan decreased by 19.3% year over year to $2 billion in the first month of the new fiscal year.
The amount of remittances received has also decreased by 7.3% month over month. In July, Pakistanis residing overseas sent $2.2 billion in remittances to the country.
Last month, Saudi Arabia ($486.7 million), the United Arab Emirates ($315.1 million), the United Kingdom ($305.7 million), and the United States of America ($238.1 million) provided the majority of the remittance inflow.
Analysts said they predicted that remittances would decrease in July but increase after Eid ul Adha in June as Pakistani expats sent more money home to buy sacrificed animals.
Furthermore, it appears that remittance inflows were diverted to the black market due to a superior dollar exchange rate there.
The International Monetary Fund (IMF) authorized a second $3 billion bailout for the country's ailing economy last month, which came perilously close to defaulting on its debt. This was followed by the revelation of the remittance numbers.
While giving a briefing on monetary policy last month, State Bank of Pakistan Governor Jameel Ahmad said that the central bank is making sure it will abide by the requirement that the average difference between the interbank and open market exchange rate does not exceed 1.25%, as well as any other terms outlined in the agreement with the IMF.
In its most recent monetary policy statement, the SBP predicted that the current account deficit for the fiscal year 2024 would range from 0.5 to 1.5% of GDP. This evaluation considers the effects of shifting national and international economic situations.
The SBP anticipates that range-bound imports will be maintained by the current forecast for global commodity prices and a modest local economic recovery.