Remittances into Pakistan have registered a spike during the opening days of Ramadan and are expected to reach last year’s levels by the end of 2016-17, a news report has revealed.
A report in the Dawn newspaper quoted a foreign exchange dealer as saying that during the first two days of Ramadan the influx of dollars increased by 15 percent.
According to the report, traditionally, monthly remittances more than double during the month of Ramadan every year. This happens due to Pakistanis abroad sending money meant for charity during the holy month. Remittances also increase again ahead of Eid.
Remittances help the Pakistani government meet the trade deficit, and are the backbone of the economy. The Pakistani economy’s reliance on remittances continues to increase, due to the foreign exchange reserves decreasing, the report said.
There has also been an increased demand for the Saudi riyal, due to a large number of people traveling to Saudi Arabia to perform Umrah. Ramadan related intake could increase the remittances Pakistan receives to $19 billion, which would be close to the previous year’s $19.5 billion, said the report.