Pakistan on 8th position with $20.1 billion remittances

Pakistan stands on the eight place among the top 10 recipients of remittances this year at $20.1 billion, according to a report.

According to Khaleej Times, the World Bank estimates that more than 247 million people, or 3.4 per cent of the world population, live outside their countries of birth among which more than six million are Pakistanis.

These Pakistanis, between July 2015 and January 2016, have sent an estimated $11.2 billion a marked increase of about 6 per cent compared with July 2014 to January 2015.

Overseas Pakistanis are remitting more than $1.5 billion a month, making a significant contribution to their families and bringing about a socio-economic change. The State Bank of Pakistan expects remittances to cross $20 billion this financial year, the highest ever and these expectations are in line with the World Bank’s calculations that place Pakistan on the eight rung among the top 10 recipients of remittances this year at $20.1 billion.

“The inflows from remittances (at current levels) now fully cover the country’s petroleum imports. Currently, international remittances are moving six per cent of the total GDP of Pakistan,” says Rizwan Wyne, a Pakistan-based expert on international remittances from Middle East to South Asia. The Migration and Remittance Factbook 2016 produced by the World Bank notes as of 2015 international migrants are expected to have sent $601 billion to their families in their home countries, of which developing countries like Pakistan received $441 billion.

At more than three times the size of development aid, international migrants’ remittances provide a lifeline for millions of households in developing countries.  In addition, migrants hold more than $500 billion in annual savings. Together remittances and migrant savings offer a substantial source of financing for development projects that can improve lives and livelihoods in developing countries, says the report.