WASHINGTON: “Pakistan will receive a record $13.5 billion in foreign remittances – a sign of overseas Pakistanis’ confidence in the economic policies of the government, which have now put the national economy on the path to stability and growth,” Finance Minister Dr Abdul Hafeez Shaikh said on Monday.
Wrapping up a weeklong visit to Washington, the finance minister said Islamabad’s policies are yielding results despite soaring international oil prices and an uncertain global economic situation. “This year, Pakistan’s economy will grow at 4% of GDP, the best in last five years,” he said.
“Overseas Pakistanis will send $13.5 billion this year, reflecting a 21% increase from last year’s $11.2 billion,” the finance minister said at a press conference. Dr Shaikh attended several World Bank and International Monetary Fund (IMF) forums during his visit. He met with his counterparts from other countries as well as US officials, and said that, during his interactions, he came away with positive feedback and appreciation for the government’s policies.
He recounted a host of positive indicators; including a 6% expansion in exports, which follow a 30% surge in exports last year; and a jump of 25% in revenue collection in the nine months from July 2011 to March 2012.
“Besides, a check on inflation and the government austerity drive have also helped ease pressures on the economy.”
At the same time, he said, Pakistan is fulfilling its debt repayment obligations and paying back $1.2 billion to the IMF this year. The World Bank will give an unprecedented $1.8 billion dollars to the country this year, and the International Finance Corporation’s profile will reach one billion dollars for projects in energy, agricultural, financial, housing , agricultural storage areas.
Published in The Express Tribune, April 25th, 2012.
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Pakistan can get rid of IMF Loan if 100000 more Pakistanis join overseas work force and remit $ 1000/month. Govt should promote the overseas employment. Discourage luxuaries import by 4 billion/ year i.e. only 10 % of total import.
Rise in Remitances is definately a good sign in Pakistan's economy, it is not becuase of inflation in pakistan because inflation erodes our rupee value , so $1000 sent 4 back year back meant 60,000 ( USD PKR Exchange rate 60 ) while now 1000 USD mean 91000 PKR.
i think it is because of crackdown by govt against Hawala System, this amount use to come through hawala system before but now it is coming by banking channels. thanks to overseas pakistanis
Rise in remittances is not a surprise given the fact that, according to the World Bank, Pakistan's diaspora is the 7th largest while its remittances are the 11th largest. Even smaller countries like the Philippines and Bangladesh are ahead.
http://www.riazhaq.com/2011/09/pakistani-diaspora-is-worlds-7th.html
@Knotty: Pakistan Govt's inflation tax is also hitting Ex-pats outside Pakistan supporting their families. Anyone with common sense can realize that this growth is very shortterm. How long are they going to pretend that 8% of Pakistan's GDP comes from COST-FREE remittance?
Before my Indian friends compare this amount with Indian remittances and investment comparions etc and rubbishe the figures, let me congratulate overseas Pakistanis who have not forgotten our country. . If we relate this to the size of our economy, this is a big achievement and it is growing every year!
These are remittances sent to relatives and family, not investment. Nothing to do with confidence in the current Govt. Why a rise? Inflation! If I spent $1000 a month last year, I'm spending $1300 a month this year.
Of the $13.5 billion sent by overseas Pakistanis half and half would be divided between President and PM
"Government austerity drive" wondering whether to laugh or cry