Saudi Arabia, UAE Help Pakistan Receive Record Remittances
Mohammad Ali (@ChaudhryMAli88) Published July 25, 2016 | 04:10 PM
ISLAMABAD, (UrduPoint / Pakistan Point News - 25th july,2016) : Overseas Pakistanis living in the UAE and Saudi Arabia sent all-time record remittances to home topping $19.9 billion that are 6.38 percent higher than the government's target for fiscal year 2016. According to the SBP spokesman, on a full-year basis, in FY-16 Saudi Arabia contributed 30 percent of total remittances amounting to $6 billion, compared to $5.6 billion in FY-15 while remittances from the UAE rose to $4.36 billion, Khaleej Times reported.
Government of Pakistan set a target of $19 billion in FY- 2016. The value of remittances in FY-15 was $18.72 billion, State Bank of Pakistan (SBP), the central bank, reported over the weekend. The remittance forecast for FY-17 is 10 per cent higher than the actual amount received in FY-16.
Saudi Arabia and the UAE are expected to stay as lead remitters, followed by the UK and other GCC countries, the SBP spokesman told Khaleej Times. The remittance boom has helped Pakistan meets its forex needs comfortably.
The significance of the remittance inflow is manifold as these form a key component of the balance of payments in a forex-short country, which has to watch out its foreign exchange reserves and foreign trade at all times.
It is also significant because the record-high inflow of remittances took place at a time when low international oil and commodity prices have forced many countries to reduce their development funding and cut down employment of foreign workers.
Financial market analysts and economists have cheered the larger inflow of remittances despite the fact that the subsidy allowed on the remittance business was reduced from July 1, 2015 when the government had decided to slash the actual subsidy from the then prevailing SR25 for each remittance transaction to SR20. It had also increased the minimum transaction amount to qualify for the rebate to $200, or its equivalent in other currencies, from $100. An official spokesman said, "The government is considering different proposals to substantially boost foreign remittances and foreign exchange reserves.
The Gulf region is to be effectively tapped by exporting the maximum manpower. The government is expecting good opportunities of manpower export during Expo 2020 in Dubai. Moreover, massive new construction plans in Saudi Arabia will also provide opportunities for Pakistani manpower export. Like other Gulf countries, Qatar stands prominently in offering a number of incentives to Pakistan.
Qatar is going to host Fifa World Cup in 2022 and has created a huge budget for this purpose. Qatar will require substantial infrastructure development where Pakistani engineers and workers are expected to find employment opportunities, which will support the inflow of remittances into Pakistan.
Related Topics
Recent Stories
Aiman Khan granted UAE Golden Visa
PSX achieves significant milestone, surpasses 72,000 mark
Pak Vs NZ T20I: Orphaned children extended special invitation to watch match
Finance Minister lauds UNDP’s unwavering support during floods
President Raisi leaves for Iran from Karachi
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 24 April 2024
Today Gold Rate in Pakistan 24 April 2024
Punjab CM inaugurates Pakistan’s first Virtual Women Police Station
Dutch model Donny Roelvink embraces Islam
Experts raise concerns over introduction of 10-stick packs
Iranian president arrives in Karachi
Law Minister expresses Govt's resolve to address issue of missing persons
More Stories From Pakistan
-
E&T Deptt checked 2895 vehicles, removed 1066 tinted glasses in ICT
31 seconds ago -
Playback singer Ahmed Rushdi remembered
10 minutes ago -
Numberdari system stressed to help implement govt policies
10 minutes ago -
Japanese cultural counsellor visits Alhamra
11 minutes ago -
Students of Women University visits SRSO's enterprise development initiatives
20 minutes ago -
Palyback singer Ahmed Rushdi remembered
20 minutes ago
-
Zero tolerance against illegal encroachments. RCB Chief
30 minutes ago -
NCHR expresses solidarity with slain Policeman guarding Sikh shopkeeper
40 minutes ago -
Eight commercial units, two warehouses sealed after detection of dengue larvae
40 minutes ago -
Ombudsman Punjab Sargodha resolves 238 complaints in current year
41 minutes ago -
70% mapping of Afghans residing in KP completed
50 minutes ago -
Partly cloudy weather forecast
50 minutes ago