Home remittances up
Asenior official of National Bank of Pakistan (NBP) has said home remittances have grown at an average rate of around 20 per cent in the last few years with banking sector contributing around 89 per cent of the inflows.
Khalid Bin Shaheen, a Senior Vice Executive Vice President (SEVP) Group Chief Global Home Remittances Management said that currently home remittances were the second largest sources of recurring foreign exchange for the country.
In FY 2012 expat sent around $13.186 billion as remittances through formal channels. Home remittances have grown at an average rate of around 20 per cent in the last few years with banking sector contributing around 89 per cent of the inflows. Pakistan is the sixth largest population in the world with around 60 per cent of its total population of 187 million falls under the age of 25 years. This translates into a large, young, energetic and talented pool of human resource. He also said that serious efforts need to be made to inculcate desired skills as per international requirements and export human resource to traditional as well as new markets. Today we are reaping the benefits of Zulfikar Ali Bhutto’s vision and foresight whereby a policy was formulated and implemented in 1970s through which a large number of unskilled laborers were sent to the Middle Eastern countries.
Pakistan has become the fifth largest remittances recipient developing country in 2012, witnessing a strong growth of 25.8 per cent during the last year in 2011 compared to the 10.1 per cent growth in South Asia remittances. The upward trend in remittances, during the period under review, was derived from a per annum average growth from UAE of 32.2 per cent followed by United Kingdom 30.1 per cent, Saudi Arabia 27.3 per cent, European Union countries 25.3 per cent, other GCC countries 15.1 per cent and United States of America 9.5 per cent from 2007-08 to 2011- 12. Since the launch of the Pakistan Remittances Initiative (PRI), the share of workers remittances coming through the banking channel has increased considerably from 75 per cent in 2009-10 to 91 per cent in 2011-12.
World Bank has estimated that the flow of remittances to developing countries in 2011 increased by 0.8 per cent from $ 325 billion 2010 and is expected to grow at seven to eight per cent annually till 2014. World Bank’s new estimates place Pakistan among top 10 recipients of remittances among developing countries, fetching $12 billion this year.