The growth in foreign remittances that soared to $ 11.4 billion during the July-December period of FY 2020 is likely to continue for the rest of the year due to a host government measures that may help achieve the target of $ 24 billion set for the financial year 2020
Islamabad (Pakistan Point News / Online - 13th January, 2020) The growth in foreign remittances that soared to $ 11.4 billion during the July-December period of FY 2020 is likely to continue for the rest of the year due to a host government measures that may help achieve the target of $ 24 billion set for the financial year 2020."Due to this increasing trend in remittances, the target of $ 24.0 billion at the end of FY2020 islikely to be achieved as the data of last five years suggests that the workers remitted more in thelast six months as compared to the first six months of the fiscal year," said a statement issued bythe Ministry of Finance.
The Ministry said that seasonal effect was also a leading factor in boosting remittances and it wasexpected that with the start of Ramadan and the following Eid, the flow of remittances wouldincrease as the workers generally sent more money during the holy events and activities.Giving a break-up of the remittances received during the Jul-Dec 2019, the statement said thatthe remittances reached $ 11.394 billion as compared to $ 11.030 billion in the correspondingperiod last year, showing a growth of 3.
3 percent. Overseas Pakistani workers remitted $ 2.097billion in December 2019 as compared to $ 1.819 billion during November 2019.On month-to-month basis, the remittances increased by $277.56 million in December, with agrowth of 15.25per cent, the highest recorded remittances in a month since May 2019. Similarly,on year-to-year basis, remittances witnessed a growth of 20 per cent in December 2019 ascompared to 0.14 per cent in the corresponding period last year.
The share of remittances fromSaudi Arabia was at 23.0 per cent ($ 2618.0 mn), U.A.E 20.6 percent ($ 2349.3mn), USA 16.6per cent ($ 1889.8 mn), U.K 15.4 ($ 1753.0 mn), other GCC countries 9.6 per cent ($ 1089.20mn), Malaysia 7.0 per cent ($ 798.0 mn), EU 3.0 per cent ($ 339.2 mn) and other countries 4.8per cent.The statement by the Ministry of Finance further said that increased efforts by the PakistanRemittance Initiative (PRI) helped to attract higher remittances from the Pakistani diasporathrough Enhancing outreach, Reimbursement of T.
T. Charges Scheme (Free-send Model) andImprovements in Payment System Infrastructure etc. Similarly, visa fee reduction from theKingdom of Saudi Arabia is likely to boost up the inflows while export of manpower had alsobeen increased from 382,000 to 625,000 during January-December 2019, with an increase of243,000 as compared to the corresponding period last years.The statement further said that the government had improved its diplomatic relations with theGulf States which had helped restored the confidence of foreign employers in Pakistaniworkforce.
Similarly, reimbursement of T.T. Charges Scheme had also been revised in December2019. Accordingly, the amount of home remittance transaction equal to and above USD 100/-but less than USD 200/- (or equivalent in other currencies) would be reimbursed at SAR 10/while the amount of home remittance transaction equal to and above USD 200/- (or equivalent inother currencies) would continue to be reimbursed at SAR 20/-.In order to further encourage promotion of home remittances through formal channels, theGovernment of Pakistan had re-launched the performance based scheme effective from January01, 2020 in which, Rs. 1 per each incremental USD mobilized over 15% growth in remittances incalendar year 2020 compared with the levels achieved in Calendar year 2019.
