Remittances from Pakistanis living abroad decreased to $2.1 billion in November 2022 as the usage of unauthorised channels (such hundi and hawala) increased in response to the country's financial crisis.

According to figures released on Wednesday by the State Bank of Pakistan (SBP), receipts decreased by 4.8% in November 2022 compared to inflows of $2.21 billion the previous month.

Remittances were down 14.3% from the same month a year ago, when they totaled $2.45 billion.

According to financial experts, non-resident Pakistanis choose to transmit money through the open market and illegal channels (like Hundi and Hawala) because they offered a significantly greater exchange rate.

As a result, the inflows through authorised routes experienced a setback. In comparison to the rate provided by banks for the majority of the month, the price of the US dollar was Rs10–12 higher in the open and grey markets.

The total amount of remittances received from July through November of FY23 totaled $12 billion, a fall of 9.6% from the same time last year, according to the central bank.

A shortage of dollars and even other currencies was seen in the open market last month, despite the rupee fluctuating between 220-224 in the interbank market.

It was discovered that clients could still purchase the dollar on the black market at a rate roughly 10% higher than the one given in the regular one, despite the money-changing enterprises' claims to the contrary, despite current exchange rates being displayed outside their establishments.

data by country

In November 2022, Pakistanis living in Saudi Arabia sent the most money—$498 million. But compared to the $570.5 million collected in October 2022, it was 12.7% less.

In the UAE, expatriates sent 11.5% less money home as receipts fell from $427 million to $377.8 million.

In the UK, remittances from Pakistanis living abroad decreased by 7.28% to $299.1 million. In October, they sent $278.8 million.

Additionally, remittances from other Gulf Cooperation Council (GCC) nations decreased marginally by 0.3% to $257.5 million, and inflows from European nations, which totaled $245.4 million in the reviewed month compared to October, decreased by 5.45%.