Remittances grow 19.5%, hit $4.69b
Despite Khan’s call to abandon formal banking channels for transferring money to their home country, overseas Pakistanis sent remittances amounting to $4.69 billion in the first quarter of the current fiscal year. This reflects growth of 19.52% as the remittances totalled $3.92 billion during the same three-month period of the previous fiscal year.
As part of his ongoing protest in Islamabad that began in the first half of August, Khan had urged overseas Pakistanis to send money home via hundi, which is the illegal way of transferring currency across international borders.
But the year-on-year comparison of data shows the public has turned a deaf ear to Khan’s appeal to dodge official money transfer channels.
According to data released by the State Bank of Pakistan (SBP) on Wednesday, Pakistanis based in foreign countries sent home $1.71 billion in September, which translates into an increase of 33.7% on a yearly basis.
Inflows from Saudi Arabia have been the largest source of remittances so far in 2014-15. They amounted to $1.34 billion in the first three months of the current fiscal year. They are up 21.77% from the corresponding period of 2013-14.
Remittances received during the last three months from the United Arab Emirates (UAE) increased 31.54% to $1.03 billion on a year-on-year basis. Inflows from the UAE registered the largest increase from any country during the last three months.
Remittances from the United States and the United Kingdom were $235.99 million and $218.38 million, respectively. The year-on-year increase in remittances from the US and the UK has been 10.77% and 4.67%, respectively.
Remittances from Gulf Cooperation Council (GCC) countries, excluding Saudi Arabia and the UAE, clocked up at $545.04 million from July to September, which is 21.89% higher than the remittances received in the same period of the preceding fiscal year.
Remittances from Kuwait reached $200.6 million while those from Oman, Bahrain and Qatar amounted to $165.61 million, $90.5 million and $88.33 million, respectively.
Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the last month amounted to $125.33 million, up 47.8% from $84.75 million in the same month of the preceding fiscal year.
In the last fiscal year, overseas Pakistanis sent home $15.8 billion, which was 13.7% higher than the remittances of $13.9 billion received in 2012-13.
People associated with money-remitting businesses had predicted that a majority of overseas Pakistanis would refrain from remitting money illegally in response to Khan’s appeal to boycott legal banking channels. Their expectation was because of the convenience and cost-effectiveness that legal money transfer channels offer to overseas Pakistanis.
The SBP offers banks a rebate facility through the Pakistan Remittance Initiative (PRI). Under the rebate scheme, neither the remitter nor the beneficiary is supposed to pay any remittance fee to the money transfer company.
The SBP reimburses the Pakistan rupee equivalent of 25 Saudi riyals to banks upon each remittance of $100 or more, provided that senders and receivers of remittances do not have to pay any fee. The bank, in turn, shares the rebate with its respective money transfer company as per their mutual understanding.
Published in The Express Tribune, October 16th, 2014.
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COMMENTS (35)
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@Humza, you are right, majority of Indian professionals would want to work abroad because of higher wages and quality of life. But things are changing quite a bit, a lot of Indians are coming back because of improved (improving) governance especially in selective parts of major metro cities. There is nothing wrong in looking after yourself as long as you don't hurt anyone else and represent your country with dignity.
The increase in remittances is a good indicator of flourishing economy of Pakistan, despite negative rants & the notorious call of Taliban Khan to the people to stop using Banking channels and send money through hundi. This is indeed a slap on the face of Imran Khan! The patriotic people of Pakistan have rejected his calls and are not giving him attention any more. The jewish lobby is doomed. Overseas Pakistanis are loyal to the country and to the government. Everybody has rejected the negative vibes of PAT/PTI & handlers.
@Ameena: You have no idea of how many Indian professionals dream of leaving home and going abroad. Go to North America and see for yourself. @Omer: An overwhelming majority of expats support Nawaz Sharif and the elected government because we understand that only by following a democratic model can any country progress - not through mob rule and Arab Spring style protests. Moreover most overseas Pakistanis work and pay taxes. We understand that there no substitute for working hard within an imperfect system like democracy. We don't buy into quick fix schemes and dharna chants that don't appeal to sense of work and patience.
@Pakistan: Yes there are professionals here but for very large scale projects our government brings people from countries like Turkey and has to offer them money that is satisfying in their currency. Whereas equally educated and bright Pakistanis are abroad and if the government gives them incentives then the budget can be greatly reduced. And besides no one likes to live far away from loved ones.
@Ameena...Pakistan is not run by the goons. professionals are present in every field. Going abroad is not something to hate. We should encourage our people to go abroad. People outside Pakistan are also working for the country, some how much better than those who are inside the country.
@Pakistani: But in India professionals are present in their own country in every field. In Pakistan everyone graduates later and start thinking of going abroad first. And ET could have used this information in an economic point of view but decided to base it on the 'failures of PTI'. But then again what can you expect from a media group that invites rebels like Gullu Butt for an interview and constantly try to put him in the spotlight. P.S I don't think India is the country we should look upto.
Sorry IK and PTI, but i would rather feed my family by transferring money to Pakistan than see them starved to death.
The article is well analyzed and informative too however, I am afraid to calculate the figures in the graphical presentation of the remittance inflow. Kindly guide me how did you calculate the figures to show the exact remittance amount of $4.69b. I have reviewed the report from the source of information also.
@Sami: We add roughly 5 million kids every year. We need to educate them. Issue is not so much brain drain, it is that we are not providing proper education and training to masses. Education is in provincial government's control. PML-N in Punjab is doing a bad job educating these kids. It will be so good for Pakistan if by 2018, PTI could show the way by giving measurable improvements in educating kids in KP. KP government can also lead the way and show how industry can flourish in KP to slow down brain drain from KP.
The reported figure don't tie up together from individually reported figures. E.Tribune see within our self before pointing fingers at any one else!!!
Saudi Arabia 1.34b UAE 1.03b US 236m UK 218m GCC 545m Others 125m
Total Sum: 3.7 Billion
Its brings good fortune to our country. All these people send their hard earned income back home. But how do our rulers spent the money earned by the remittances?? Its not IK but the rulers who are plotting against Pakistan, amazingly they are doing so while sitting within the country.
What about the billions languishing in Swiss accounts people, you forgot already?
Hats-off to the illiterate loyal work force of Pakistan BUT we must not ignore the fact that a lot of foreign funding came in for IK and TUQ rallies.
Well we overseas Pakistani had to send money back home because of the falling economy and our families not being able to pay bills due to rise in electricity costs. I never had to send money from abroad in the last 7 years. This is the first time ever I and many other Pakistanis had to because families aren't able to afford any more. All thanks to Nawaz Shareef's sasti bijli :) So please don't turn the tables around on Imran Khan. We 99% Pakistanis living abroad still believe he is the only one who can give us back our integrity
@Muhammad-Ali Sabir: Omer mentioned "an overwhelming majority" and I'm sorry, you are just part of minority!
What a twisted viewpoint taken by ET. PTI has nothing to do with this. We have to send remittances to support our families as the government has totally failed to contain inflation, provide facilities and use our hard earned tax-money properly. The real reason for increased remittances is due to talented people leaving he country to earn their living as the government has done nothing to facilitate them.
Rather than just quoting IK, please spare a thought as to why the call was made in the first place. It was to pressurize the government to stop this brain drain and retain this talent in the country so that they can serve Pakistan.
99% of expats support Naya Pakistan! Go and conduct a survey!
i hope more Pakistanis get job overseas and more dollars remit into Pakistan. I dont know why we think that Pakistanis leaving the country for working overseas is a failure for the govt. Look at india, millions of indians are working outside india (specially middle east) and still trying to send more people and in result india receiving billions of dollars, then why should not we do the same....
@Omer: Sorry! your assumption is wrong. I am proud Pakistan resident in UAE.
for ET and the like minded tunnel visioned press, everything end at PTI.
@Blithe: Expats trust IK and we may disagree with some of his statements but we agree on most. This is the sole reason the status quo don't give the voting rights to expats as they are very well aware that all those votes will go to IK.
So now we're looking at a surge in remittances in light of Khan's failure? This is just shallow reporting. The fact that people haven't pitched into Khan's civil disobedience shouldn't even be a footnote to such an article. Provide a cross-country comparison or the impact of remittances on the Pakistani rupee or the GDP.. Make sense please!
This was a mistake by pti. Bad political move.
Free remittance for Pakistanis is a bounty by the govt. Here in UAE, every person has to pay some amount to remit the money but only Pakis dont pay any fees for the remittance...well done SBP
PMLN is doing this on purpose, millions of educated Pakistanis are leaving the country and only Gullu Butts and people with low IQ's are staying behind, NS is using this as a strategy to get more votes because he is aware of the fact that most of his voters have low IQ's and would rather have motorways and laptops than education or healthcare. We need to put an end to this before NS succeeds and makes Pakistan into Noonistan.
Is it 3.69 or 4.69? The numbers don't add up?
I think it is not that the public has turned deaf ears.. its more that people are stuck between rock and hard place... either they see their relatives die hungry, hand-to-mouth or support PTI's cause... there is not much choice... because the people who are sending money are the poor ones working overseas.
For politics it may be good, in short run for country too, but for our future it is very alarming. Brain drain is at its peeks during last couple of years, and professionals are leaving Pakistan. But PMLn will not take it into consideration, they need money, not future.
"Paying little heed to passionate appeals by Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan, overseas Pakistanis seem to be in no mood to observe civil disobedience for now."
Usual biased reporting by ET. PTI had taken that call back regarding foreign remittance. They did not make an ego issue out of this and corrected what was wrong. Now the focus is only on not paying electric power bills since the govt robbed people of $70 billion in form of overcharges.
This is one of the biggest slaps on Imran Khan by Pakistanis whom he thinks are fool.By now only some egoists don't admit rest assure that this man is the enemy of Pakistan.Shame shame.
I see that the "dentist " PTI has note declared his assets .
Please remove the perks and privaleges he is abusing , including an apartment in Parlimentarian lodges - kick him out!
An overwhelming majority of expat Pakistanis support PTI and Imran Khan. Go Nawaz go!!!
EID twice and then this 2% charity this qtr so keep it real report the full story 1/2 not good!
A curse on Bani Gala for promoting ordinary Pakistanis to turn to illegal activities. IK should be behind bars!