Remittances cross $10b for first time in history

Published: June 11, 2011

Expatriate workers send more than $1b for third consecutive month.

KARACHI: 

The State Bank of Pakistan (SBP) has announced that remittances sent home by overseas Pakistani workers have crossed the $10 billion mark for the first time in the country’s history as the figure reached $10.1 billion in 11 months (July-May) of the current financial year.

The 11-month figure was $2.03 billion or 25 per cent more than $8.06 billion worth of remittances received in the same period of the previous year.

In May, overseas workers remitted over $1 billion, which was the third consecutive month that remittances crossed this mark. The country received $1.05 billion, $1.03 billion and $1.05 billion in March, April and May respectively.

Citing reasons for the sharp increase in remittances, analysts say that a crackdown on the illegal Hundi and Hawala money transfer systems, swift processing and transfer of money by the banking channel and incentives for overseas Pakistanis have encouraged them to utilise legal channels. The flow of charity money after last summer floods has also given a boost to the remittances this year, they say.

In the July-May period, remittances from Saudi Arabia, UAE, USA, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries were $2.38 billion, $2.33 billion, $1.86 billion, $1.18 billion, $1.09 billion and $320.93 million respectively. In comparison, remittances stood at $1.72 billion, $1.84 billion, $1.61 billion, $1.13 billion, $793.91 million and $229.74 million respectively in July-May 2009-10.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the 11 months amounted to $926.86 million against $740.96 million in the same period last year.

Published in The Express Tribune, June 11th, 2011.

Reader Comments (8)

  • fahim
    Jun 11, 2011 - 8:38AM

    It seems there is not even a drop from our all weather fren China ! I was thinking that China has the most favorable and relaxed rules for us to live and remit among all countries, based on the adjectives we always shower on them… but in actual numbers it seems more gas talk.. Can someone clarify about our status in China, how many pakistanis are there and whats the remittance amount or is it just one way friendship where chinese dont allow us to work with good pay?? Recommend

  • Jun 11, 2011 - 11:04AM

    @fahim:
    If one has agenda about Pak China friendship it is best to keep it to oneself. There are many countries not on the list, this doesnt mean they are not Pakistan friends.Recommend

  • Fighter
    Jun 11, 2011 - 6:42PM

    Wow $10 billion !!, this will surely put tight slap on the face of all those who says Pakistan’s economy is not doing well. I would hardly doubt any other developing nation will have that kind of figure. Recommend

  • WiZeGuy
    Jun 11, 2011 - 7:24PM

    @moise and @fahim: Both of you need to understand first what remittance means! Your comments clearly show your ignorance to it… This is the money sent by Pakistani`s living overseas in these countries !!! Recommend

  • Moderate
    Jun 11, 2011 - 7:40PM

    Finally, something to thump your chest!Recommend

  • Jun 11, 2011 - 8:14PM

    @WiZeGuy:
    I know, thank you for your concern. I was replying to fahim for unrelated issue of Pak China friendship and remittance from China.Recommend

  • Kasim
    Jun 11, 2011 - 11:13PM

    @Fighter: The following are the figures of 2010 in Billion $. India tops the list followed by China and Mexico.

    I am surprised to see Bangladesh at No. 5, ahead than us. Really Unbelievable. Even a small country Nigeria is marginally ahead of us. We need to device some new strategy on this.

    India – 53.1

    China – 51.3

    Mexico – 22.0

    Philippines – 21.4

    Bangladesh – 10.8

    Nigeria – 10.0

    Pakistan – 9.7

    Lebanon – 8.4

    Vietnam – 8.0

    Egypt – 7.7

    Refer the authentic link (Page 10) : http://siteresources.worldbank.org/ EXTDECPROSPECTS/ Resources/476882-1157133580628/MigrationandDevelopmentBrief16.pdfRecommend

  • rifaye (india )
    Jun 11, 2011 - 11:43PM

    @ fighter : seriously, you need some lesson to understand economy of a nation. if remittance means a country economy is growing, this is just laughable.

    a country economy is judged by the domestic consumption of goods, production of goods, export value, import value, and foreign reserve. you could include these factors in almost all industry right from heavy industry, agriculture, petroleum, chemicals, semiconductors, IT, financials…and so on…..

    A developed nation like germany, japan, usa, develop new technology, invest hugely in R&D, and remain as a leader in development.. A growing nation like india, china, brazil, who adopt foreign technology and have its own domestic production, and over the period of time , spend hugesly on its R&D ,start developing its own technology..,

    when i say this, all these has to be consistent, and keep growing in real value and as well as % wise..while manage to keep the fiscal deficit under control, yet able to contribute the money earned back to society.. thats how a health economic power looks like..

    now, answer me this question. what is pakistan contribution in the above mentioned parameters ?Recommend

More in Business