HOW CURRENT ECONOMY OF PAKISTAN IS GOING TO IMPACT REMITTANCES?blogger2 June 14, 2019 0 COMMENTS
The current economic situation of Pakistan is called to be the outcome of the current mechanisms used under the government of PTI. A remarkable slowdown has been seen during recent days. Opposition parties are continuously criticizing the current government for the rise of the inflation rate and the falling value of the currency. As per remittances are concerned, an obvious impact can also be analyzed because of its direct relation with the inflation rates, interest rates and the value of the Pakistani rupee.
Remittances are known to be the second largest resource inflow for developing countries. According to the reports, the SBP raised the interest rates to 12.25% as a result of which economic slowdown are going to be experienced in the coming years as well. The fluctuating rates are surely going to impact the funds entering into the country. Additionally, rising inflation is going to impact the living standards of people who receive remittances from foreign countries. Also, the value of currency correlates with the foreign currency that foreign workers remit to their home countries. It is also worth noting that the depreciating currency helps in inward remittances. As the rupee depreciates, remittances are positively impacted. All the indicators impacting remittances are also impacted by the flow of remittances.