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Pakistani workers abroad can remit $20 billion: study
The potential workers' remittance to Pakistan is estimated to be more than $20 billion in contrast to $12 billion shown by the Balance of Payment data 2010-11, implying the existence of a large pool of contributions that can be tapped and diverted to formal channels.
This was shown by a study conducted by Dr Rashid Amjad, Dr G M Arif and Dr M Irfan of Pakistan Institute of Development Economics (PIDE). The study analysed the ten-fold increase in remittances between 2001 and 2012 and arrived at conclusions that manifold increase recorded in remittances in the last decade could largely be explained by an increase in the stock of Pakistani migrants working abroad. Their numbers increased from less than 4 million in 2004 to about 7 million in 2012.
Changes in their skill composition - becoming more skilled and better paid - also contributed to the increase. However, this explanation is critically dependent on assumptions regarding remittances sent through formal and informal channels. The study showed that a major part of recorded remittances covered not just remittances from Pakistani workers abroad but all remittances sent by the Pakistani diaspora, many of whom have acquired nationalities of their countries of residence.
The study suggested that the Pakistan Remittances Initiative (PRI), jointly started by the State Bank and the Ministry of Finance, has played an important role in diverting remittances from informal to formal channels. In this effort, they received sterling support from major commercial banks.
The study concluded that untapped remittances of over $10 billion per annum could be diverted to formal channels. This required continued efforts by the State Bank of Pakistan and commercial banks. The study concluded that there was a need to examine current procedures, and rules and regulations in countries that encouraged transfers through informal channels as well as transfers of such resources into foreign accounts. Some commercial banks were also of the view that Pakistanis should be allowed to open foreign accounts abroad. This would encourage them to deposit money in Pakistani banks abroad, instead of foreign banks.
Pakistani workers abroad can remit $20 billion: study | Business Recorder
The potential workers' remittance to Pakistan is estimated to be more than $20 billion in contrast to $12 billion shown by the Balance of Payment data 2010-11, implying the existence of a large pool of contributions that can be tapped and diverted to formal channels.
This was shown by a study conducted by Dr Rashid Amjad, Dr G M Arif and Dr M Irfan of Pakistan Institute of Development Economics (PIDE). The study analysed the ten-fold increase in remittances between 2001 and 2012 and arrived at conclusions that manifold increase recorded in remittances in the last decade could largely be explained by an increase in the stock of Pakistani migrants working abroad. Their numbers increased from less than 4 million in 2004 to about 7 million in 2012.
Changes in their skill composition - becoming more skilled and better paid - also contributed to the increase. However, this explanation is critically dependent on assumptions regarding remittances sent through formal and informal channels. The study showed that a major part of recorded remittances covered not just remittances from Pakistani workers abroad but all remittances sent by the Pakistani diaspora, many of whom have acquired nationalities of their countries of residence.
The study suggested that the Pakistan Remittances Initiative (PRI), jointly started by the State Bank and the Ministry of Finance, has played an important role in diverting remittances from informal to formal channels. In this effort, they received sterling support from major commercial banks.
The study concluded that untapped remittances of over $10 billion per annum could be diverted to formal channels. This required continued efforts by the State Bank of Pakistan and commercial banks. The study concluded that there was a need to examine current procedures, and rules and regulations in countries that encouraged transfers through informal channels as well as transfers of such resources into foreign accounts. Some commercial banks were also of the view that Pakistanis should be allowed to open foreign accounts abroad. This would encourage them to deposit money in Pakistani banks abroad, instead of foreign banks.
Pakistani workers abroad can remit $20 billion: study | Business Recorder
