Tag: remittances

  • Expats remitting around $7m per day, PM told

    Expats remitting around $7m per day, PM told

    Prime Minister (PM) Imran Khan said that 82,728 Roshan Digital Accounts (RDA) opened so far in 97 countries of different continents by the overseas Pakistanis.

    $436 million through these facilities have been remitted in digital accounts. On average, Pakistani expatriates are remitting around $6 to $7 million every day.

    The prime minister was presiding over a meeting to review the progress of the facilities made available for the overseas Pakistanis under the Roshan Digital Account.

    The facility was introduced under the vision of PM Imran and received encouraging response from overseas Pakistanis.

    The expatriates from Saudi Arabia (KSA), The United Arab Emirates (UAE), United Kingdom (UK), and the United States of America (USA) had taken lead in utilising the facility.

    The participants were apprised of the cooperation of ministries of Foreign Affairs and Finance, Overseas Pakistanis and Human Resource Development as well as the Federal Board of Revenue (FBR) in the success of Roshan Digital Account.

    The Roshan Digital Account (RDA) is the brainchild of the government of Pakistan and has been initiated by the State Bank of Pakistan.

    The RDA initiative aims at connecting the diaspora with Pakistan financially by facilitating their remittances and will operate in collaboration with eight leading commercial banks operating in Pakistan.

    The eight leading banks have been providing innovative banking solutions for millions so that they can open an account in any bank through an entirely digital and online process; without visiting a bank branch, embassy or consulate. All they need to do is submit the basic set of information and documents.

  • Sixth consecutive month: Remittances remain over $2 billion

    Sixth consecutive month: Remittances remain over $2 billion

    Pakistan has maintained a strong momentum in workers’ remittance for the sixth consecutive month in November with over $2 billion, the State Bank of Pakistan (SBP) has reported.

    Workers’ remittance increased 28.4% year-on-year in November 2020, pushing the cumulative flows to $11.8 billion during the July-November FY21 with a rise of 26.9% compared to same period last year.

    “This significant growth reflects continued government and SBP efforts to formalise remittances under Pakistan Remittances Initiative (PRI), growing use of digital channels amid limited international travel, orderly exchange market conditions and improved global economic activity,” said the central bank.

    The top four countries that contributed to the highest inflows are Saudi Arabia ($3.3 billion), United Arab Emirates ($2.4 billion), United Kingdom ($1.6 billion) and the United States ($1 billion).

  • Remittances rise to record single month high of $2.77 billion in Pakistan

    Remittances rise to record single month high of $2.77 billion in Pakistan

    Remittances rose to $2.77 billion in July, which is the highest ever level of remittances in a single month in Pakistan, according to data released by the State Bank of Pakistan (SBP) on Monday.

    That represents a year-on-year growth of 36.5pc when compared with July 2019, and 12.2pc when compared to June 2020. Last month, remittances were recorded at $2.47 billion, which the SBP had dubbed as ‘historic’ at the time.

    Most of the remittances in July were received from Saudi Arabia, at $821.6 million; followed by UAE, at $538.2 million; UK, at $393.9 million; and the US, at $250.6 million.

    The central bank also noted that the growth rate in remittances compared to the same month in the previous year is around twice as high as the Eid-ul-Adha related seasonality typically experienced over the last decade.

    “Given the impact of COVID-19 globally, this increase in worker’s remittances is encouraging,” the SBP said.

    Overall, there are two main factors that explain the rise in remittances, along with some minor reasons.

    The first is that it seems the use of official channels to send remittances has increased, and there has been a decline in traditional hawala and hundi methods of sending cash home.

  • Pakistan witnesses increase in remittances inflow: Moody’s

    Pakistan has witnessed an increase in remittances — money transferred back home by expats — inflows in recent years, a recent report by Moody’s — America’s biggest business and financial services company — has revealed.

    While an increase in remittances is good for any country’s household finances, according to the World Bank (WB), Pakistan is the seventh-largest recipient of remittances globally.

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    This inflow reached $21 billion, or 6.8% of the country’s GDP in 2018-19.

    During fiscal years 2012-19, remittances grew by 9%. Majority of inflows coming from Gulf Cooperation Council countries added up to make 54% of total remittances in 2019, while the United States (US), the United Kingdom (UK) and Malaysia stood at 16%, 16% and 7%, respectively.

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    Such growth benefits Pakistani banks by providing a stable and low-cost deposit base (the deposit that could be used for long-term lending).

    Moody’s expects further growth in remittances because of Pakistani authorities’ focus on remittances and digitisation, which will further reduce the cost of repatriating funds.