Pakistan is a country where remittance remains a key external source that works for exceeding foreign investment flows. These remittances are considered to be the major source of foreign exchange, earnings from major exports and covering substantial portion of imports of the country. These remittances are therefore considered as the backbone of Pakistan’s economy.
Statistics show that an apparent increase in remittances have been witnessed after the establishment of Pakistan Remittances Initiative (PRI) in 2009. After six years of PRI launch, it was affiliated with the State Bank of Pakistan and other stakeholders that made the remittances increase by $150 pc. As of current year, it is anticipated to cross $15bn this year that would substantially add an excessive amount of $9 billion to the foreign exchange reserves of the country.
As we discussed earlier that remittances have been playing a major role in stabilizing the economy of the country and what makes it more functional is the source and the country from where it gets derived. There is a great role played by overseas Pakistanis in this regard. If we put emphasis on the statistics of the year 2014-2015 by State Bank of Pakistan, overseas Pakistanis sent $18.4 billion of remittances in total. As of preceding fiscal year it was $15.8 billion, which experienced a rise in June when Pakistanis from foreign countries sent $1.8 billion.
Remittances from UK and USA
In June-July, the major remittances from United Kingdom and United States remained $2.3 billion and $2.6 billion respectively as recorded by State Bank of Pakistan. The yearly increase in remittances from USA and UK has been 4.8% and 4.9% respectively.
Largest Remittances From KSA and UAE
The major share of the remittances of the year 2015 to Pakistan came from Kingdom of Saudi Arabia. It is amounted to over $5.6 billion as of first quarter of year 2015. It brought up the amount from 19% from preceding 12 months. From UAE, the remittances increased from 35.3 % that made it to reach the amount to $4.2 billion on yearly basis.
There are few more gulf countries other than KSA and UAE bringing a large amount as remittances to the country of Pakistan. They are mainly Gulf Corporation Countries (GCC) that hit $2.1 billion in July and June. As recorded in the preceding fiscal year, it is 15.6% higher than the previous remittances. From Oman, Bahrain and Qatar, the remittances equaled to $666.8 million, $389 million and $347.5 million respectively.
From Kuwait, the remittances of the year 2014-2015 increased to $748.1 million that is one huge increase as of previous remittances.
The other remittances as from Norway, Switzerland, Australia, Canada, Japan anad other countries increased to amount $110.53 million taking the fortune of Pakistan’s economy to a brighter side and making the economists anticipate a good outcome in future years.
The better prioritization and tactful approach of finance ministry towards the issues related to remittances from other countries can result in a good outcome in the form of production and development of the economy of the country.