Pakistan's foreign reserves have fallen to a critical low of USD 8 billion in August 2021 . Remittances in Pakistan are expected to reach USD 30 billion in FY23, down from USD 31 billion in FY 2022 .
Islamabad, Pakistan, November 28: As reserves have fallen to a critical low of USD 8 billion in August 2021, limiting the country's ability to make international payments, Dr. Sakariya Kareem said in an interview with Asian Lite that Pakistan's economy continues to depreciate as well.Pakistan's currency woes are compounded by a persistent decline in remittances.In July-October 2022, remittances totaled USD 9.9 billion, down 8.6% from USD 10.827 billion in the same period last year.Overall remittances in Pakistan are expected to reach USD 30 billion in FY23, down from USD 31 billion in FY 2022, according to Asian Lite, owing to an international economic recession in textile and clothing exports in Europe, the United Kingdom, and the United States, owing to higher energy prices, higher electricity expenditure, and increasing credit costs in the West.Pak export profits reached a historic high of USD 19.35 billion last year.
According to Asian Lite, Pakistan's textile exports could fall by USD 3 billion.Although Pakistan's overall trade deficit fell to USD 10.8 billion in the first four months of FY 2023, compared to a deficit of USD 13.75 billion in the same period the previous fiscal year, the international market is not willing to trust the promises as the nations economy continues to avoid default by borrowing more from markets, donors, commercial banks, and friendly nations, according to Dawn.The talks between the IMF and Pakistan will resume after Pakistan works on its promise to raise the price of petroleum products and take other steps as part of a loan agreement that was renewed earlier this year, according to official sources with whom the talks were rescheduled after the World Banks released a report on flood damage in Pakistan in October.Pakistan is due to pay USD 1 billion in cash on December 5 for the maturity of five-year Sukuk, or Islamic bonds, but the international market isn't happy to trust the promises, as the nations economy continues to avoid default by borrowing more from markets, donors, commercial banks, and friendly countries, according to the financial market. Imran Khan, the Pakistan Tehreek-e-Insaf Chief, accused the US of planning his ouster.