Remittances have sharply increased in Pakistan that may lead to total collection of up to $2 billion during Ramazan, said currency dealers yesterday.
Each year $300 to $500 million is additionally remitted during Ramazan, mainly on account of zakaat, donations and higher expenses in the holy month and during Eid.
Average inflow of remittances per month is about $1.3bn in the fiscal year-2014; and with an addition of $700m, the total inflows could be around $2bn for Ramazan.
The immediate impact of higher inflow was felt in the open market where dollar fell to as low as Rs98.90 on Saturday while currency dealers believe that it may fall further at the end of Ramazan when inflows would be at peak.
“The inflow in the open market was much higher than normal days. Most of those reaching us were sellers, buying has dropped to extremely low,” said Anwar Jamal, another currency dealer.
However, it was felt that the inter-bank market showed negative response to this high inflow of remittances. Bankers said the State Bank bought dollars to save it from further fall that hits exporters.
