Bilal
THINK TANK: CONSULTANT
If it’s eliminated, that’s the number possible right now.
Remittances from Overseas Pakistanis - Updates
- Thread starter ghazi52
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Pakistan Space Agency
Elite Member
Masha'Allah. Simply brilliant.
Pakistan Space Agency
Elite Member
I would say it is if they've made it easier and efficient for people to transfer money through legal means.
ghazi52
THINK TANK: CONSULTANT
- Thread starter
- #94
Remittances see ‘record increase’ in December with $3.1bn inflows
APP
January 10, 2025
The State Bank of Pakistan on Friday said remittances from overseas Pakistanis recorded inflows of $3.1 billion in December which Prime Minister Shehbaz Sharif hailed as a “record increase”.
A statement issued today said the growth in workers’ remittances was 29.3 per cent compared to the same month last year and a 5.6pc increase in comparison to November 2024.
The SBP added that overall remittances rose 32.8pc during the first half of the fiscal year 2024-25, with inflows of $17.8bn from July to December 2024 compared to $13.4bn in the last fiscal year’s corresponding period.
A separate detailed remittance report said that inflows of $2.91bn were recorded during November and $2.38bn in December 2023.
According to the SBP, inflows in December were mainly sourced from Saudi Arabia ($770.6 million), the United Arab Emirates ($631.5m), the United Kingdom ($456.9m) and the United States($284.3m).
Remittances from other Gulf countries during December totalled $310m, $360.3m from the European Union, $68.8m from Australia, $15.8m from Malaysia and $9.6m from Norway, the report added.
Prime Minister Shehbaz Sharif congratulated the nation on the “record increase”, saying that the claims of those who had been chanting to halt the country’s economy had proven to be baseless.
“[A] record increase in the foreign remittances reflects the strong commitment of the overseas Pakistanis for playing their role in [the] development of the country,” the prime minister said in a statement.
He added that after achieving economic stability, the country was now on the path of economic growth and the government was determined to ensure national development and public welfare.
State Bank Governor Jameel Ahmed expressed hopes a day ago that an uptick in remittances and a dip in inflation would lend stability to the economy this year.
He estimated remittances to be in the region of $35 Billion in FY 2025.
ghazi52
THINK TANK: CONSULTANT
- Thread starter
- #95
Editorial:
Remittances must be channeled for development instead of squandering on imported luxuries
REMITTANCES sent home by migrant Pakistani workers have been a saving grace for the country’s faltering economy for the last two decades.
With export revenues growing at a painfully slow pace — and often stagnating for years in between — and foreign capital and investment inflows drying, successive governments have relied on remittances to push import-based consumption to boost growth. Thus, even a tiny increase in cash sent home by overseas Pakistanis can always be a moment for celebration.
The ongoing fiscal year has proved to be exceptional for remittances, with inflows soaring by a third to a record level of $17.8bn in the first half of the year to December from $13.4bn a year ago. This lends hope that the country will be able to meet the targeted inflows of $35bn in remittances, far surpassing export earnings, this year. No wonder the prime minister has used this occasion to “congratulate’ the nation and boast of his government’s success in stabilising the economy while underlining the commitment of overseas Pakistanis to their country’s development.
The market players attribute the surge in remittances through formal banking channels to numerous factors: clampdown on illegal currency trade and smuggling to Afghanistan, stricter controls on exchange companies, exchange rate stability, and increased labour migration, especially young IT professionals, from the country in recent years. It is believed that remittances have a potential to grow to $60bn a year if illegal currency trade is stemmed and customs controls strengthened against under-invoicing of imports by major traders from China, Dubai and elsewhere.
The increase in remittances is indeed a positive development for the economy as these have been driving the current account surplus for the last several months, contributing significantly to exchange rate stability and improvement in the State Bank’s forex reserves in the absence of foreign direct investment, as well as any meaningful bilateral and multilateral inflows.
But it is not a wise policy to rely on them for external account stability. Remittances have their downsides as well. Studies have shown that higher remittances boost consumption and imports, lead to decline in domestic manufacturing and exports, and make economies of recipient nations more vulnerable to global and regional economic crises.
ghazi52
THINK TANK: CONSULTANT
- Thread starter
- #96
No matter how favourable an impact these have on economic growth, remittances cannot be a substitute for exports and foreign private investment, which increase domestic productivity and generate jobs. Moreover, the quantum of remittances a country receives can never be predicted.
Remittances represent hard-earned money by migrant Pakistanis that must be channeled into productive use for the country’s social and economic development instead of squandering on imported luxuries. At the same time, the government needs to devise a strategy to increase industrial and agricultural productivity to boost exports and reduce reliance on uncertain remittances.
Published in Dawn, January 12th, 2025
Remittances represent hard-earned money by migrant Pakistanis that must be channeled into productive use for the country’s social and economic development instead of squandering on imported luxuries. At the same time, the government needs to devise a strategy to increase industrial and agricultural productivity to boost exports and reduce reliance on uncertain remittances.
Published in Dawn, January 12th, 2025
hydrabadi_arab
Trusted Member
"Remittances increased by 25% YoY to $ 3.0bn during Jan’25Remittances by overseas Pakistani's increased by 25% YoY to USD 3.0bn during Jan'25 compared to USD 2.4bn during Jan’24. On MoM basis, remittances decreased by 3%.In 7MFY25, remittances increased by 32%YoY to USD 20.8bn."
$36 billion annual remittances! Exports meanwhile $31b.....
$36 billion annual remittances! Exports meanwhile $31b.....
Bilal
THINK TANK: CONSULTANT
35-37b goods exports at the current rate.
Pakistan Space Agency
Elite Member
It was $38.45 billion for fiscal year 2023-2024. Let's see if it can beat the all time high record of $38.76 billion achieved in 2021-2022.
ejaz007
Registered Member
Remittances rise by 31.7% to $20.8bn in July-January
Facility of Roshan Digital Accounts (RDA) has also made it easier for workers to send money
By Erum Zaidi
February 11, 2025
KARACHI: Remittances sent to Pakistan surged to $20.8 billion in the seven months of fiscal year 2025 from $15.8 billion (31.7 per cent) a year earlier, the State Bank ofPakistan (SBP) said on Monday, a sign that contributions from overseas workers continue to support the nation’s economy.
In January alone, money sent from abroad reached $3 billion, a 25 per cent increase from last year. However, remittances fell by 2.5 per cent compared with the previous month.
Migrant workers are sending more money home to support their families, thanks to the country’s efforts to curb illegal foreign exchange trading, an increase in the number of citizens working abroad, and economic stability bolstered by the International Monetary Fund (IMF) bailout. The facility of Roshan Digital Accounts (RDA) has also made it easier for workers to send money.
The inflow of remittances plays a vital role in supporting Pakistan’s external accounts and foreign exchange reserves. Currently, the SBP’s forex reserves amount to $11.42 billion, sufficient to cover over two months’ worth of imports.
Analysts expect Pakistan to record a fourth consecutive current account surplus in January, driven by sustained remittances—despite a slight month-on-month decline—and a lower trade gap. Recent data from the Pakistan Bureau of Statistics (PBS) indicates that the trade deficit dropped to $2.313 billion in January, a decrease of 5.5 per cent from the previous month.
Arif Habib Limited, a brokerage house, reported last week that the country was expected to achieve a current account surplus of $168 million for January.
“We anticipate a current account surplus for January due to robust remittances, despite higher imports over the past two months, as reflected in PBS data, along with the current pace of interest payments and dividend repatriation,” noted Awais Ashraf, the director of research at AKD Securities Limited.
“However, the surplus would be relatively smaller in scale, while the possibility of a modest deficit cannot be ruled out,” Ashraf added.
Fitch Ratings, a credit rating agency, stated in its latest commentary that strong remittance inflows, robust agricultural exports, and tight policy measures have allowed Pakistan’s current account to achieve a surplus of approximately $1.2 billion (over 0.5 per cent of GDP) in the six months to December 2024, compared with a similar-sized deficit in FY24. Reforms in the foreign exchange market during 2023 also facilitated this shift.
However, Fitch noted that Pakistan’s external financing needs will remain significant in the coming year. The South Asian nation is required to repay over $22 billion in external debt during the current fiscal year, which includes nearly $13 billion in bilateral deposits.
“Declining external liquidity, such as delays in IMF reviews, could lead to negative action,” the rating agency cautioned. Nevertheless, Fitch acknowledged that Pakistan has made strides in rebuilding its forex reserves and has outperformed the targets set by the IMF.
Pakistan has successfully met three out of five major fiscal conditions imposed by the IMF. The forthcoming IMF review in March is crucial for securing the next $1 billion loan tranche, although analysts believe there are no significant hurdles to its approval.
Remittances rise by 31.7% to $20.8bn in July-January
KARACHI: Remittances sent to Pakistan surged to $20.8 billion in the seven months of fiscal year 2025 from $15.8 billion a year earlier, the State Bank ofPakistan said on Monday, a sign that...
www.thenews.com.pk
SoulSpokesman
Trusted Member
@Pakistan Space Agency
PSA sb,
Let's see if it can beat the all time high record of $38.76 billion achieved in 2021-2022.
If I understand correct, Paks export was boosted by large subsidies given by the then IK govt. Not possible under current circumstances. If they exceed it without subsidies, it will be a good effort.
Regards
PSA sb,
Let's see if it can beat the all time high record of $38.76 billion achieved in 2021-2022.
If I understand correct, Paks export was boosted by large subsidies given by the then IK govt. Not possible under current circumstances. If they exceed it without subsidies, it will be a good effort.
Regards
SiliconBit (silicon0000)
Trusted Member
That $38.76 billion figure of remittances you mentioned for 2021-22 is wrong. It's around 30 billion.
Pakistan Space Agency
Elite Member
2023-2024 exports were $38.45 billion.
So if the exports continue to grow at the current rate, they should reach an all time high figure by 30 June 2025 insha'Allah.
Pakistan Space Agency
Elite Member
$38.76 billion figure is the total exports figure.
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