Despite recent slowdown, the State Bank of Pakistan (SBP) is expecting that home remittance inflows will cross $20 billion mark end of this fiscal year. While unveiling Monetary Policy Decision at a press conference on Saturday at SBP head office here, Governor State Bank Ashraf Mahmood Wathra said that, home remittance inflows have been dropped from the Gulf countries, the US and the UK.

"The pound's sizable depreciation against the US dollar and some changes in the dynamics of Pakistani labour in Gulf countries after lower oil price are major reasons behind lower remittance inflows during the first half of this fiscal year," he added.

However, he said despite some slowdown in the home remittances, overall home remittances inflows end of June 2017 will be over $20 billion or may be slightly higher than previous fiscal year's.

He said that current account deficit is increasing because of rising goods import and non-payment of Coalition Support Fund (CSF). "We were estimating CSF inflows amounting to $1.1 billion during FY17, however, Pakistan has not received even a single penny under this head during the first half of this fiscal year," he said. He said lending to private sector is gradually increasing and government is also making efforts to increase the domestic production. The federal government has recently announced Rs 180 billion textile package to enhance exports and earn more foreign exchange, he added. Replying to a question, the governor SBP said that Pakistan's total debt stands at Rs 20.8 trillion out of which Rs 7 trillion is external debt.

Copyright Business Recorder, 2017