Pakistan remittances: Govt to announce package next month

The government has decided to announce a comprehensive package in early next month to facilitate Pakistanis abroad who send remittances.

This package also included the digital application to facilitate the Pakistanis living abroad for sending remittances.

Prime Minister Imran Khan chaired a review meeting on facilitating remittances and providing more facilities to Pakistanis abroad under priority sectors.

Finance Minister Shaukat Fayyaz Tareen, Special Assistant Dr. Shahbaz Gill, Governor SBP Raza Baqir, Chairman NADRA Muhammad Tariq Malik, and other senior officials were present.

Officials informed that the Ministry of Finance and SBP are jointly developing a comprehensive package for remittance Pakistanis.

This includes not only financial incentives and rewards in proportion to the remittances but also the opening of beneficiary accounts and remittances.

The government is also ensuring immediate transfer of remittances in Pakistan.

 A digital application for the system is also under development. We are working with 9 major national institutions to provide concessions ranging from travel facilities to preparation of identity documents, purchase of essentials, and payment of taxes, insurance, and children’s education expenses, Prime Minister said.

The government will complete work by early next month and formally launch the program.

The Prime Minister said that Pakistanis living abroad are our most valuable assets and the rising remittances indicate their confidence in the policies of the government.

The Prime Minister directed to ensure the completion of the work within the stipulated time frame for these measures and said that a portal for redressal of grievances should also be made a part of the plan by formulating a strategy for strict monitoring of the project.

Pakistan Remittances have clocked in at US$ 2.7 billion, down by 2 percent year on a yearly basis for the month of July 2021. However, they are up by 1 percent month on month basis (MoM).

The remittances have witnessed an increase from the United States and EU countries. However, the remittances in Pakistan witnessed a sharp decline from Middle East countries including Saudi Arabia and UAE.

The major reason for the decline in remittances from Saudi Arabia is not to open flights for Pakistanis. The work visas of the majority of Pakistanis have expired.

Topline Research in a report said quoting the source of State Bank of Pakistan that Pakistan remittances stood at US$ 2.7 billion in the month of July 2021.

During the period under review, the United States of America (USA) was a major source of remittances in Pakistan.

Overseas Pakistanis sent US$ 312 million in the month of July up by 12 percent compared to US$ 279 million in the month of June 2021. They were up by 22 % year on a year basis (YoY) compared to 251 in the month of July 2020.

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The second source of remittances in Pakistan is United Kingdom (UK) which stood at US$ 393 million up by 5 percent month on monthly basis compared to US$ 376 million in June 2021. They amounted to US$ 394 million in the month of July 2020.

However, remittances of Pakistan declined by 22 percent from Saudi Arabia year on year basis to US$ 641 million in July compared to 822 million in July 2020. They declined by 4 percent month on a monthly basis which stood at US$ 671 million in June 2021.

Remittances also declined by 1 percent year on year basis from United Arab Emirates (UAE) to US$ 531 million. They stood at US$538 million in July 2020. They witnessed a reduction by 2 percent against US$544 million in June 2021.

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The remittances also declined by 1 percent from other gulf countries on yearly basis to US$294 million against US$297 million in July 2020. They were US$298 million in June this year.

However, Remittances in Pakistan have faced a sharp increase of 33 percent year on year basis from European Union (EU) countries. They stood at US$298 million in July 2021 compared to US$ 228 million in July 2020.

They increased by 9 percent on monthly basis compared to US$ 274 million in June 2021.

Remittances from other countries also witnessed an increase of 2 percent on yearly basis.

They stood at US$239 million in July 2021 compared to US$ 235 million in July 2020. However, they witnessed a decline of 3 percent month on monthly basis against US$ 246 million in June 2021.