A remittance is a transfer of money by a foreign worker to an individual in his or her home country. Money sent home by migrants competes with international aid as one of the largest financial inflows to developing countries.
Pakistan becomes the 8th largest home remittance sender worldwide according to remittance data inflows October 2015 by World Bank.
According to the report of Word Bank, foreign workers’ remittance share in Pakistani GDP in 2014 was 6.9% that is likely to increase at the end of running year. World Bank has also forcasted that this year total remittance to Pakistan would be $20,100 million that is $3,034 million higher than year 2014 and $5,471 million higher than year 2013.
According to Statistics and Data Warehouse Department of State Bank of Pakistan the amount remitted during July to September 2015 was $4,966.54 million that was 4.01% higher than the same period during 2014. The amount received during September 2015 was $1,775.87 million as compare to the $1,748.49 of September 2014.
Major source of foreign workers’ remittance are: Saudi Arabia, United Arab Emirates, United States of America, GCC Countries, European Countries and some others.
World Bank report also revealed that the overall foreign workers’ remittances are expecting to remain slow during rest of 2015. The reason is the weaker currencies against the US dollar, slash in oil prices and many other issues that are restricting migrants to send money to their family according to the World Bank Migration and Development Brief.
“One out of seven people in the world is a migrant, and a quarter of them, international migrants. Migration is intimately linked to the development process,” said Dilip Ratha, head of KNOMAD and an author of the MD Brief. “The inclusion of migration and remittances in the SDGs is a welcome step forward.”
Estimates and projections for remittance flows to developing countries