The State Bank of Pakistan (SBP) has said that the talk of $3 billion loss due to capping the value of the dollar is false. Exports are taking the brunt of the global recession.
According to the announcement issued by the State Bank of Pakistan in Karachi, most countries are reducing the demand for Pakistani products by increasing interest rates. US interest rate was 0.25% in March 2022 which is 4.50% today.
According to the central bank, the rate of inflation is high even in developed countries. Exports were hit by global recession, inflation and post-Covid supply issues and floods.
According to the State Bank, slightly stable interest rate is not the reason for lower exports. In April 2022, worker remittances were $3.1 billion due to Eid remittances. Workers’ remittances decreased due to global recession and inflation.
The State Bank said that inflation in developed countries increased expenditure and reduced remittances. Post-Covid, those coming to Pakistan are bringing cash dollars with them.
According to the central bank, there are many reasons for the decline in exports and remittances, not just the exchange rate.
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