Economy supporting by overseas Pakistanis
June 17, 2011
Pakistan is no doubt a fragile and vulnerable economy being run with foreign aids but it has been supporting by its Pakistan living abroad with handsome foreign exchange throughout the years, witnessing an outstanding growth in the last couple of months.
Pakistan presently has the highest growth of remittances in the world which is the second largest source of foreign exchange in the country. The growth in amount reflected that expatriate Pakistan not only sent money to their families but also helped the flood victims generously.
The overseas’ Pakistanis valuable contribution has been strengthening the economy tremendously to improve country’s balance of trade and balance of payment significantly and to appreciate the value of rupee against leading foreign trading currency.
The expatriate remittances have attained the projected target of 9 billion dollar in 10 months of current fiscal year. The amount though could not dilute the high inflation spree in the country but it is definitely provided strong support to hundreds of families through money by their breadwinners living in different foreign states.
According to State Bank of Pakistan, home remittance in the first ten months of the current fiscal (July-May 2010-11) rose by 25.20 percent over the same period last fiscal to $ 10.096 billion aided by record inflows of $ 1.052 billion in March; $ 1.030 billion in April 2011 and 1.049 billion in May respectively.
The inflows major chunk remitted from four countries including United Kingdom (UK), Arabia (KSA), United States and UAE as overseas majority of population reside in these countries.
Pakistanis living in Saudi have sent a colossal amount remittance, which is calculated as US $ 2.378 billion with 23.5 percent share of overall remittance, which is the highest amount coming from single state.
The remittance contributed by Pakistanis workers and businessmen in UAE contributed heavily to country with its share equal to US $2.091 billion till May 2011, that crossed US $ 10 million benchmark billion so far in the current fiscal year till May 2011.
The remittances of these countries contributed more than 50 percent in overall incoming foreign exchange as a matter of fact a significant number of Pakistani population have been living in these two Arab countries. The increasing inflows also show that Pakistanis are actively participating in the economic and development projects in these countries.
As per an estimate, Pakistani population in Saudi Arabia has exceeded to 1.5 million which is the highest overseas population of the country living abroad. United Kingdom (UK), United State of American (USA) and United Arab Emirate (UAE) are other countries with significant population of Pakistanis which varies from 1.2 million to 1 million.
The remittance inflows received from UK and USA are calculated at US $1.093 billion and US $1.864 billion in the eleven months of the current fiscal year. These countries made 30 percent contribution in overall remittance amount.
Middle East has become the largest market of Pakistan workers exports in the world. The remittances from the region were recorded US$ 1.184 billion. Gulf States such as Oman, Qatar, Libya and Kuwait are attractive markets for professionals and businessmen but majority of these countries have lost charms since the masse’s uprising hit economic activities and working environment in Yemen, Bahrain and Libya. The workers remittance in the aforementioned countries witnessed drop in the last month.
EU countries particularly Germany, France, Spain and Italy remitted modest income by overseas Pakistanis. The amount was stood at US $ 320 million in the eleven months period of current fiscal year.
Analysts believe that remittances inflow will mark a record history with annual value is likely to surpass US $ 11 billion benchmark. The amount is excluding of hundred thousands of riyals transferred to country through illegal or hundi system and families of overseas workers get their livelihood in this way
The skilled and educated overseas Pakistani not only contributed well to the national economy but they also support other Pakistanis to get employed on their guarantee in foreign states despite credit crunch witnessed in the last couple of years.
The educated professionals such as doctors, engineers and teachers are playing a vital role in KSA, UAE and other markets because they earn money and repute handsomely and help Pakistan to improve its image and receive substantial foreign exchange.
There is a need to prepare a proper strategy at government level in collaboration with educational institutions to provide highly educated and well trained human resources to foreign states to participate in the economic activities of the world.