Islamabad, Dec 16: Pakistan’s efforts to curb illegal foreign exchange trading are yielding positive results, with remittances expected to hit a record $35 billion this year, up from $30 billion last year, according to a Bloomberg report. Finance Minister Muhammad Aurangzeb credits these gains to stringent measures against unofficial dollar trading.
Economist John Ashbourne of BMI, Fitch Solutions, notes that the reforms have redirected remittances from the black market to official channels. This shift has significantly boosted Pakistan’s foreign exchange reserves, now exceeding $12 billion, their highest since March 2022.
This development comes amid critical reforms under the International Monetary Fund (IMF) program, which secured Pakistan a $7 billion loan in September. Redirecting dollar transactions to formal banking channels has bolstered reserves, easing economic vulnerabilities that previously risked default.
