ISLAMABAD: State Bank Governor Reza Baqir, has said that depreciation of the rupee against the US dollar had benefitted overseas Pakistanis sending remittances to the country.
Addressing a press conference in Manchester, SBP Governor revealed that, “The number of remittances sent by our overseas Pakistanis, after their hard work and effort, is increasing due to exchange rate fluctuation.” He said that a higher exchange rate had caused some people to lose but others benefitted from it.
SBP Governor further mentions that, “Suppose if our remittances in this year reach $30 billion, we hope they will be even more and if our exchange rate in the last few months has depreciated even 10 percent then an additional $3bn are reaching the families of overseas Pakistanis this turns out to be more than Rs500bn.” He further added that while talking about the one who loses, “we should not forget those who are benefitting.”
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Regarding the talks between International Monetary Fund and Government, he said, “It’s a normal process and any gaps between the positions of the Fund and the government were closed through negotiations”.
“This gap has been closed to a large extent. Every time there is a review, our journalist friends get reports that an agreement has not been reached yet so people get worried but in the end, it turns out that an agreement is done,” he added.
However, while talking about the country’s economic situation he said, “Real GDP growth means that people’s income increased 4pc more compared to inflation”.
He said good news would be delivered “very soon” on the matter. The SBP chief also talked about the country’s economic situation and said GDP growth had been recorded at close to 4pc in the fiscal year that ended in June. “Real GDP growth means that people’s income increased 4pc more compared to inflation,” he said.
The Pakistani currency hit a new all-time low of Rs173 against the US dollar after shedding Rs2.02 (or 1.2%) during intra-day trading in the inter-bank market on Monday.
