Pakistan’s Exchange Companies Sell Record $450 Million to Banks in May
In a remarkable development, exchange companies in Pakistan have sold a record $450 million to banks in May, contributing significantly to the country’s reserve-building efforts to address the twin deficits. The month also saw the highest-ever remittances of $3.24 billion, with inflows via exchange companies reaching unprecedented levels in the current fiscal year.
According to estimates by some exchange companies, the total sales to banks during the fiscal year 2024 could potentially reach $4 billion, setting yet another record for the industry. Zafar Paracha, the General Secretary of the Exchange Companies Association of Pakistan, highlighted that the $450 million sales in May alone represented the highest amount in a single month for FY24.
While some financial market experts attribute the surge in inflows to Eidul Azha, Mr. Paracha believes that there is still room for further growth, given the remaining days of the festive period. He anticipates even higher inflows in June, citing exchange rate stability, decreased inflation, and growing confidence among overseas Pakistanis as key factors driving the trend. Additionally, investments in real estate are on the rise due to falling prices, further fueling the positive economic outlook.
The significant increase in remittances, up by 54% compared to the same period last year, has pushed the total to $27.093 billion in the first 11 months of FY24. Market experts predict that the total remittances could surpass the $30 billion mark, reflecting the strong performance of Pakistan’s exchange companies and the overall economic resilience of the country.
This news, published in Dawn on June 9th, 2024, underscores the critical role played by exchange companies in supporting the country’s financial stability and growth. Stay updated on business, finance, and tech news from Pakistan and around the world by following Dawn Business on Twitter, LinkedIn, Instagram, and Facebook.