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Remittances Expected to Soar to $35 Billion in FY25: Finance Minister Aurangzeb

remittamces $35 Billion in FY25

KARACHI: Finance Minister Muhammad Aurangzeb has announced that Pakistan is on track to achieve an all-time high of $35 billion in FY25 workers’ remittances, compared to $30.25 billion in FY24. Speaking at the Overseas Investors Chamber of Commerce and Industry (OICCI) in Karachi, he emphasized that the rupee-dollar exchange rate is now dictated by market forces, creating a stable environment that encourages both domestic and foreign investments.

Pakistan Aims High for Foreign Remittances with $35 Billion in FY25 & Export Led Growth

  • Record Remittances and Economic Reforms: Pakistan is projected to receive a record $35 billion in remittances for FY25, driven by market-determined exchange rates and improved financial policies. The government is also prioritizing privatization, liberalization, and deregulation to address losses from state-owned entities costing Rs2.2 billion daily.
  • Focus on Export-Led Growth and Stability: The government aims to attract Foreign Direct Investment (FDI) in export-oriented projects to reduce reliance on imports, tackle current account deficits, and ensure sustainable growth. Political stability is emphasized to avoid economic losses caused by protests and disruptions.

Aurangzeb stressed the importance of privatization in tackling the mounting losses from state-owned entities (SOEs), which are costing the national exchequer Rs2.2 billion daily. Over the past decade, these losses have accumulated to Rs6 trillion, nearly 50% of the Rs12.9 trillion revenue target for FY25. He reiterated that privatization, liberalization, and deregulation are critical for reviving economic efficiency.

The finance minister also noted that $2.2 billion in foreign company profits were successfully repatriated during May-June 2024, clearing the entire backlog. With restrictions on repatriation lifted, he said it is now up to commercial banks to facilitate smooth transfers.

Aurangzeb highlighted the government’s focus on export-led growth and attracting Foreign Direct Investment (FDI) to reduce reliance on imports. However, he acknowledged the challenges posed by Pakistan’s import-driven economy, which struggles with widening current account deficits and balance of payment issues whenever the GDP growth rate exceeds 4%.

He further criticized political protests and sit-ins, which he claimed have cost the national economy Rs190 billion, urging the opposition to avoid such disruptions. Addressing the business community, he assured them that the government is committed to resolving their concerns and promoting macroeconomic stability to foster trade, investment, and economic growth.

As Pakistan sets its sights on achieving fiscal stability, the combination of record remittances, privatization, and export-oriented policies offers a roadmap for sustainable economic progress.

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