Govt urged to bridge gap between dollar’s official, open market rates
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Adnan Paracha, an expert on the overseas employment, has said that despite the fact that more than 800,000 people went to work abroad in the year 2022, the decrease in remittances is a big question, reported 24NewsHD TV channel on Tuesday.
He said that the main reason behind the decrease in remittances from the official channel is due to a difference of Rs30-35 in the dollar rate being offered in the interbank and open market. He asked the government to immediately take strict measures to eliminate black market rate of the dollar.
Paracha said that 19% decrease in remittances was recorded in December 2022 as compared to December 2021.
Pakistan received $2 billion remittances in December 2022 as compared to $2.52 billion remittances in December 2021.
He noted that 0.8 million people went abroad for employment in year 2022 whereas 0.28 million people went abroad for jobs in year 2021. Despite the fact that more than 500,000 extra labour went to foreign countries for work last year, but still the remittances were plummeted, he added.
He said that 60 percent of the job seekers from Pakistan go to the Gulf countries.
He cited the dollar rate difference in the interbank and open market as the main factor behind falling remittances. He said the overseas Pakistanis are using illegal channels like hawala and hundi to remit their money in exchange for better rate.
He stressed the need to do away with this differential in order to increase country’s foreign exchange reserves through remittances.
Reporter Ashraf Khan