The State Bank of Pakistan (SBP) has responded to recent claims that the cap on the dollar price caused a loss of $3 billion in remittances and exports

 The State Bank of Pakistan (SBP) has responded to recent claims that the cap on the dollar price caused a loss of $3 billion in remittances and exports. The central bank has stated that the decrease in exports is not solely due to the exchange rate, but rather a result of various factors such as moderating demand in international markets, monetary tightening in trading partners, and inflation in developed countries.

Additionally, the SBP stated that the decline in workers' remittances was not only due to the relatively stable exchange rate, but also because of the global economic slowdown and higher inflation in developed countries. Furthermore, with the resumption of international travel post-COVID, some remittances have shifted to foreign currency cash transfers via overseas Pakistanis traveling to Pakistan.

It is important to note that the decline in Pakistan's exports and remittances is due to a combination of external and domestic factors and cannot be attributed solely to the exchange rate. The SBP emphasized that it is not appropriate to ascribe the decline solely to the exchange rate and stressed that the bank is closely monitoring the situation and taking necessary actions to maintain stability in the market.

In conclusion, the SBP has emphasized that the stability of the rupee in the inter-bank market is not the sole cause of the decline in exports and remittances, but rather a result of various factors. The bank is committed to ensuring stability in the market and addressing any issues that may arise.