To home, with Love

Thanks to its huge expat workforce, Pakistan has become one of the largest remittances recipient countries in the world

First the facts. Overseas Pakistanis remitted close to a whopping $19.30 million from July 2016 to June 2017, according to State Bank of Pakistan (SBP), with $4.31million from the UAE alone. Most forex centres in the UAE are expecting record-breaking remittances by expatriate Pakistanis in the coming years. Clearly, the initiative by the State Bank of Pakistan (SBP), Ministry of Finance and Ministry of Overseas Pakistanis to facilitate and support a faster, convenient and efficient flow of remittances seems to be bearing fruit.

SBP noted that workers remitted $19.91 billion in 2015/2016, marking a growth of 6.38 per cent compared to $18.72 billion received in the preceding fiscal year.

In June 2017 alone, the inflow of worker’s remittances amounted to $1.83 million. During this month, inflows came from Saudi Arabia, UAE, U.S., U.K., GCC countries (including Bahrain, Kuwait and Oman) and EU countries.

According to an official at the Pakistan Embassy in the UAE, overseas Pakistanis have been and will remain the co-authors of Pakistan’s success story. By dint of hard work and sacrifice they have not only carved a name and niche for themselves in foreign lands, but also contributed immensely to the uplift of their communities and country back home.

“The Pakistani community in the UAE, which in terms of sheer numbers is one of the largest of our diasporas, and in terms of diversity, perhaps the most representative of our kaleidoscopic country, has played a vital role in national life. By sending remittances now to the tune of over $4.2 billion a year, they continue to help buttress the national economy. And they have been fantastic ambassadors of Pakistan, to a country that all Pakistanis hold dear and close to their hearts,” he had said.

Besides increased facilities to expat Pakistanis like simplified transfer procedures, the jump in remittances is attributed to competitive exchange rates and better service from banks and exchange bureaus. Habib Bank’s HBL FastTransfer, for instance, allows dear ones back home in Pakistan to receive remittances instantly and for free across all HBL international branches. Users can also take advantage of its FastCash option to send amounts of up to PKR 500,000 per transactions that can be collected instantly from any HBL branch within three days of transfer.

Similarly, the National Bank of Pakistan makes it very convenient to remit money to any beneficiary’s account in a matter of minutes, completely free of charge. “Sending money through legal foreign exchange centres and banking channels contributes to the wealth of Pakistan by boosting the nation’s economy. These days you can easily remit money to Pakistan from the UAE and what is more, the money can be expected to reach the destination

within 24 to 48 hours,” said Faheem Khan, a young banking executive.

On a related note MCB, a top Pakistani bank, offers home remittances to overseas Pakistanis at no extra cost. The bank, with its large network of over 1,100 branches, has international sendagents like MoneyGram, Xpress Money and RIA financial that facilitate remittances to family and friends in Pakistan quickly, easily and conveniently.

Similarly, in the UAE, UAE Exchange, a global name in remittance and foreign exchange, with a strong network spanning across 29 countries and five continents, is a popular money-sending bureau with many overseas Pakistanis in the UAE.

‘LuLu Now’ by LuLu Exchange allows immediate credit to designated bank accounts instantly, while QuickRemit from Mashreq allows customers to transfer Pakistani rupees free of charge through the bank’s digital platforms: MashreqOnline and Snapp.

Earlier this year, a study by the UN International Fund ranked Pakistan as the third largest receiving country for remittances in 2016, with figures recording $20 billion.

The Economic Survey of Pakistan noted that the government is also aiming to explore new markets to export its manpower as well as incentives for the remittances to further enhance its growth.

International Monetary Fund (IMF) figures show that the huge jump in remittances to Pakistan is a direct result of higher worker migration and the exodus of more highly skilled workers from the country.

“On the economic front, Pakistan has surpassed many milestones under the present leadership. During the last three and half years or so, the country has witnessed positive macro-economic indicators. The reports of various reputed international rating agencies bear testimony to this fact. Similarly, international financial institutions (IMF and World Bank) have posted their confidence in economic policies being pursued by the present government. The country’s foreign exchange reserves have surpassed the mark of $22 billion. Pakistan Stock Exchange is trading at its highest point,” said Syed Javed Hassan, Consul General of Pakistan in Dubai.

While the exact number of Pakistanis working abroad is not available, according to the country’s Ministry of Foreign Affairs, more than five million Pakistanis are currently present in the Middle East, Europe and North America. Around one million Pakistanis work in the UAE alone. With high remittances, a huge development is being encouraged in Pakistan. Moreover, the money is positively contributing to the migrants’ own home communities.