Expats benefit when exchange rate goes up: Reza

MANCHESTER: Some people suffer losses due to a rise in the exchange rate, but some also benefit from it, says State Bank of Pakistan (SBP) Governor Reza Baqir.

The SBP governor was speaking at a press conference, where he said that the devaluation of currency helped overseas Pakistanis and their families as they were now sending back home more money to their loved ones compared to before.

"The money sent by our brothers and sisters, the overseas Pakistanis who send their hard-earned money in the form of remittances, is increasing in quantity due to the exchange rate [fluctuation]," he said.

"Some people suffer losses when the exchange rate goes up, but others also benefit from it," he explained. He said this "additional money" is being sent to Pakistanis in the country, reiterating that every economic policy of the government proves to be beneficial for some, while not for others.

"So when we talk of some people being at a disadvantage [due to economic policies], we should not forget the ones who benefit from them as well," he noted. Speaking about Pakistan's probable deal with the International Monetary Fund (IMF), Baqir said the government will not sign any agreement with the international money lender that will harm Pakistan's economy.

Insisting that the deal will be a transparent one, he said authorities will reveal details of the IMF detail for everyone to inspect. He spoke about Pakistan's compliance with the Financial Action Task Force's (FATF) targets, adding that Pakistan had fulfilled 26 out of its 27 conditions.

"Pakistan will soon come out of the grey list," he said. He said Pakistan had almost recorded a GDP growth rate of 4 percent, adding that a 4 percent real GDP growth rate meant the earnings of people also increased by four-fold.