ISLAMABAD: The State Bank of Pakistan today reported a 5.3 percent month-on-month increase in the inflows of remittances in September 2023.
According to the SBP’s data, overseas workers’ remittances recorded an inflow of US$2.2 billion during Sep 23.
In terms of growth, during Sep 2023, remittances increased by 5.3 percent on m/m. Meanwhile, in the first quarter of the ongoing fiscal year, the SBP recorded remittances inflow of US$ 6.3 billion.
Remittances inflows during Sep 2023 were mainly sourced from Saudi Arabia ($538.2 million), United Arab Emirates ($400 million), United Kingdom ($311.1 million) and United States of America ($263.4 million).
IMF projects 2.5% economic growth for Pakistan
Meanwhile, the International Monetary Fund (IMF) has projected Pakistan’s economy is expected to experience a growth rate of 2.5% in 2024, with the potential to increase to 5% by 2028.
The IMF’s World Economic Outlook indicates a decline in inflation in Pakistan, projected to drop from 29.2% in 2023 to 23.6% in 2024. The Fund released its WEO on Tuesday.
Additionally, the report forecasts a reduction in Pakistan’s unemployment rate from 8.5% to 8% in the coming year.
However, it also anticipates an increase in the current account deficit from 0.7% to 1.8% in 2024.
Meanwhile, the IMF painted a cautious picture of the global economy, acknowledging that it is gradually recovering. The IMF projects global economic growth to remain at 3% for the current year, consistent with its previous forecast from July.
However, the forecast for the following year has been slightly adjusted downward to 2.9%. The IMF characterizes the global economy as still facing challenges, including high inflation, tight monetary policies, the Russia-Ukraine conflict, and extreme weather events.
In 2022, the global economy grew by 3.5%. Nevertheless, elevated inflation in many countries remains a significant factor affecting growth. Also, the impact of policies aimed at curbing inflation is expected to dampen economic activity in the future.
