(BE2C2 Report) — Pakistani expats have been remitting more money back home after the value of the Pakistani rupee fell sharply against the Omani rial.
CEO of Oman UAE Exchange Boban M P told Times of Oman his company had registered a 12 percent increase in remittances to Pakistan since the weakening of the Pakistani rupee last week.
The value of the Pakistani rupee against a single rial stood at just over Rs300 on the morning of March 25. This is a fall of nearly Rs14 from some Rs287.50 in a week.
The Pakistani rupee had weakened Rs5 against the dollar on March 21. Some suspect it to be a case of devaluation by the State Bank of Pakistan (SBP), the south Asian nation’s central bank. However, some believe other factors are at play here.
M P said various factors may have led to the sharp decline.
“The sharp fall in PKR (Pakistan rupee) in less than four months is largely due to factors such as the widening of current account deficit, steep surge in the import bill from China, plunging of foreign exchange reserves, pressure of dollar funding and expectations of US federal rate hikes,” he said.
He added it was an opportune time for Pakistani expats to remit more money home.
“The plummeting value of the home currency will always be advantageous for expat remitters,” M P said. “For instance, the evening of March 24, 2018, saw OMR/Rs at 299.740 when compared to last week, where OMR/Rs was 287.568. This means that regular remitters will be able to send more money home now, while investors will have an opportunity to hedge their funds strategically during this time,” the Oman UAE Exchange CEO remarked.
M P said all expats should make use of legal means to remit money to their home accounts.
“With the PKR (Pakistan rupee) depreciating further, we foresee the remittances to Pakistan spike up in the coming months. And as corporate citizens, we always encourage our customers to remit money through legal channels so that not only is their hard-earned money protected from unreliable middle-men, but they can also contribute to strengthening their nation’s economy,” he said.
Secretary General of Pakistan Social Club (PSC) Mohammad Zaeem said people should exercise caution in managing their earnings and remittances.
“These remittances are a major contributor to Pakistan’s economy. However, one needs to be careful in managing one’s earnings and expenses here in Oman and sending money home. Do remit more money if you feel like it is a good time, but do so responsibly,” he said.
Pakistani expat Farooque said there was a feeling among Pakistani expats they should be remitting more money at this time.
“My Pakistani acquaintances are sending more money home now.
“They think it is the ideal time to do so,” he added.
Meanwhile, Overseas Pakistanis sent remittances amounting to $12.833 billion in the first eight months (July to February) of FY18, showing a growth of 3.41 percent as compared with $12.410 billion received during the same period in the preceding year.