Overseas Pakistanis’ remittances exceed $2bn for fourth month in row: PM Khan

[Vapour]

How is this good?

Yes, good that currently it is helping to run households, therefore driving their expenditure and fulfilling their needs, thereby, they are spending on the economy and promoting economic growth and jobs. However, this is reliance on external funding for your own economy.

What is needed is to developed your own industries, so that instead all those expat Pakistanis, that range from working class right to the elite, come back to Pakistan and invest and work in their own country. Right now, what's happening is, that these expat Pakistanis are paying indirect and direct taxes to foreign government, investing their wealth and capital in foreign land/properties and tying their future and their future generations' futures to foreign countries. So, literally what Pakistan is getting, are scraps, enough to keep the status quo going but not enough to fundamentally transform the economic situation.

 

[Protest_again]

God works in mysterious ways. The country bound to collapse since 1947, comes back on steady path even with adverse weather and rocky tides.

Its been 73 years. Get over such excuses.

 

[Signalian]

Its been 73 years. Get over such excuses.

God creates excuses for Pakistan to survive and prosper. Deal with it and live with it. I cant help you much in this regard.

 

[Vapour]

God creates excuses for Pakistan to survive and prosper. Deal with it and live with it. I cant help you much in this regard.

Ignoring Indian drivel, it is clear that the need for indignization in the defence industry is a microcosm of the economy, by developing own industries, it won't be just remittances that Pakistan can attract, it will also be the human capital, FDI and modern industrial processes and standards. Remittances alone cannot transform the economy, or at least develop it to where the economy needs to be with respect to the size of the population.

 

[Goenitz]

Govt should focus on austerity... Else, this goes waste.

 

[Protest_again]

God creates excuses for Pakistan to survive and prosper. Deal with it and live with it. I cant help you much in this regard.

Justification for sake of justification. Fine, I can deal with it.

 

[KurtisBrian]

Its also a shame that our exports are almost equal to our remittances, we should focus on the economy on emergency bases and should make a concrete foundation instead of shortsighted steps. If you want to win in long term, the economy is everything.

if economy is everything then stop moving to other nations to live off of them. Americans didn't go to France, the UK....to obtain money to build America.

 

[American Pakistani]

No. It does not.

India

Forex Reserves - $545 billion
Exports - 550 billion (goods&services)
Remittances - $80 billion
FDI + FPI + VC - $100 billion
Tourism Forex - $25 billion

Compared this to Pakistan

Forex Reserves - $20 billion
Exports $25 billion (goods &services)
Remittance -$24 billion
FDI+FPI - < $4 billion
Tourism forex < $2 billion.

You can clearly see my point. We are not dependent on remittances as forex reserve source.

I agree with you here. We have a shameful export numbers compare to remits.

 

[Wikki019]

if economy is everything then stop moving to other nations to live off of them. Americans didn't go to France, the UK....to obtain money to build America.

Highschool kid?

 

[KurtisBrian]

Highschool kid?

beggar?

 

[VCheng]

In a tweet, he said remittances from overseas Pakistanis rose to $2.3billion in the month of September this year, which is thirty-one percent higher than last September and nine percent higher than August this year.

This is not good news for the economy, let us be clear. This is good only or the balance of payments. The hard currencies once converted and used by those who receive the remittances lead to higher import bills for luxury goods, and higher prices for real estate and just about everything else secondarily. This is not sustainable in the long run.

 

[TheDarkKnight]

This is not good news for the economy, let us be clear. This is good only or the balance of payments. The hard currencies once converted and used by those who receive the remittances lead to higher import bills for luxury goods, and higher prices for real estate and just about everything else secondarily. This is not sustainable in the long run.

In these adverse times I don't think the actual inflow (legal+illegal) has increased at all, as thousands of jobs have been eliminated for Pakistanis abroad. The illegal flow has now been diverted to legal flow for multiple reasons (new laws and suspension of flights). Since there doesn't seem to be a net increase in total remittances inflow, in fact it must have decreased, we should not see the impacts you are pointing to. If there was an actual increase in remittances due to more Pakistanis working abroad and inturn them sending more money back, then yes the issues you pointer would start to show up. Pakistans import bill has also been contracting at a consistent basis for quite some time as well.

 

[VCheng]

In these adverse times I don't think the actual inflow (legal+illegal) has increased at all, as thousands of jobs have been eliminated for Pakistanis abroad. The illegal flow has now been diverted to legal flow for multiple reasons (new laws and suspension of flights). Since there doesn't seem to be a net increase in total remittances inflow, in fact it must have decreased, we should not see the impacts you are pointing to. If there was an actual increase in remittances due to more Pakistanis working abroad and inturn them sending more money back, then yes the issues you pointer would start to show up. Pakistans import bill has also been contracting at a consistent basis for quite some time as well.

What I point out has been historically correct. What you are describing are merely the short terms steps. In the longer term, remittance do indeed have all those effects, and therefore they cannot be a substitute for actual exports to balance the books.

 

[Musings]

No. It does not.

India

Forex Reserves - $545 billion
Exports - $550 billion (goods&services)
Remittances - $80 billion
FDI + FPI + VC - $100 billion
Tourism Forex - $25 billion

Compared this to Pakistan

Forex Reserves - $20 billion
Exports $25 billion (goods &services)
Remittance -$24 billion
FDI+FPI - < $4 billion
Tourism forex < $2 billion.

You can clearly see my point. We are not dependent on remittances as forex reserve source.

Why does the world and this thread have to revolve round India? Look at the title and look at the vomit you are posting - either stick to the topic and reserve posting 1 line trolling posts then this and jog on.

Stop the pathetic comparison...... A nation where there are more beggars than the whole of Africa, a nation that has more starving than any other nation in the world is one that doesnt need comparison to anyone else. Feed your poor and begging and stop being so pathetic. Your as close to economic and financial stability as i am to having a night of passion with Katrina Kaif.

The wealth you suggest one would think you was talking about a Norwegian or some superpower - not one where humans are rotting in the open and Corona has taken over.

Back to topic - ex pats are pumping funds in Pakistan - its certainly encouraging and gives the country a chance to get itself back on its feet.

 

[PAKISTANFOREVER]

Why does the world and this thread have to revolve round India? Look at the title and look at the vomit you are posting - either stick to the topic and reserve posting 1 line trolling posts then this and jog on.

Stop the pathetic comparison...... A nation where there are more beggars than the whole of Africa, a nation that has more starving than any other nation in the world is one that doesnt need comparison to anyone else. Feed your poor and begging and stop being so pathetic. Your as close to economic and financial stability as i am to having a night of passion with Katrina Kaif.

The wealth you suggest one would think you was talking about a Norwegian or some superpower - not one where humans are rotting in the open and Corona has taken over.

Back to topic - ex pats are pumping funds in Pakistan - its certainly encouraging and gives the country a chance to get itself back on its feet.

Here is the evidence to confirm everything that you have said:

A third of the world’s poor live in India, says UN

South Asia and Sub-Saharan Africa are home to the majority of the extremely poor people in the world, states this year's Millennium Development Goal report.Ac

www.downtoearth.org.in

Half of the world’s poor live in just 5 countries

Of the world’s 736 million extreme poor in 2015, 368 million—half of the total—lived in just 5 countries. The 5 countries with the highest number of extreme poor are (in descending order): India, Nigeria, Democratic Republic of Congo, Ethiopia, and Bangladesh.

blogs.worldbank.org

Why India remains malnourished

Two-and-a-half-year-old Rabina weighs 6.5 kg. A healthy child of her age should weigh at least 8 kg. But Rabina could not escape the curse of being born in Shiv

www.downtoearth.org.in

India houses 24% of world's malnourished; 30% of stunted children under 5

India has shown improvement in reducing child stunting but with 46.6 million stunted children, the country is home to over 30.9% of all stunted children under five--the highest in the world

wap.business-standard.com

India accused of poverty 'smokescreen'

India has been accused of creating a "smokescreen" to conceal the true scale of poverty in the country after the government claimed to have lifted more than 50 million people above the threshold in the last five years.

www.telegraph.co.uk

India has one third of world's poorest, says World Bank

One in three of the world's poorest people are living in India, the world's second-fastest growing economy, according to a new study by the World Bank.

www.telegraph.co.uk