The State Bank of Pakistan (SBP) has announced that the notion that capping the dollar price led to a $3 billion loss in remittances and exports is false. The central bank stated that the decline in Pakistan’s exports and remittances is due to various external and internal factors, not just the exchange rate.
According to the statement, the export of goods has been impacted by moderating demand in international markets and monetary tightening by major trading partners, such as the United States. Additionally, inflation in the developed world and devastating floods in Pakistan have also contributed to the decline in exports.
Regarding workers’ remittances, the central bank noted that they have gradually decreased from the record high of $3.1 billion in April 2022, primarily due to the global economic slowdown and higher cost of living abroad. The bank added that some remittances have shifted back to foreign currency cash transfers through overseas Pakistanis traveling to Pakistan following the resumption of international travel post-COVID.