Remittances cross $1 billion dollars, make new record

[SMC]

^ It's not a sudden increase. It's been increasing steadily.

 

[StingRoy]

Remittances are partial indication of the confidence the non-residents have in the economy. It could also be an indicator that most non resident Pakistanis are seeing the growing economy as a positive sign or could also be an indicator that things are getting cheaper in Pakistan because of the depreciating value of the currency.

Most remittances fall in the category of investments be it property or stocks. So it is clear that more people are willing to invest and see a lower risk in its economy.

 

[deckingraj]

if that is the case than it is good...However given the turmoil in mid-east and the number of Indian/Pakistani expatriates there i will not be surprised if they kick off a sudden capital inflow in the respective economies through remittance...Though Indian economy comparatively huge can take care of such monetary shocks relatively easily as compared to Pakistani counterparts....Let's see how things unfold...

 

[deckingraj]

Remittances are partial indication of the confidence the non-residents have in the economy. It could also be an indicator that most non resident Pakistanis are seeing the growing economy as a positive sign or could also be an indicator that things are getting cheaper in Pakistan because of the depreciating value of the currency.

Most remittances fall in the category of investments be it property or stocks. So it is clear that more people are willing to invest and see a lower risk in its economy.

I am not challenging the remittance in general....You are right about it...What i am challenging is that a sudden jump in remittance amount....It becomes even harder for smaller economies like Pakistan to absorb the sudden growth in Capital inflow which can lead to further devaluation of currency...Anyhow as SMC explained it is not sudden i rest my case...though turmoil in mid-east must have been a strong reason for this phycological 1 billion mark

 

[StingRoy]

I am not challenging the remittance in general....You are right about it...What i am challenging is that a sudden jump in remittance amount....It becomes even harder for smaller economies like Pakistan to absorb the sudden growth in Capital inflow which can lead to further devaluation of currency...Anyhow as SMC explained it is not sudden i rest my case...though turmoil in mid-east must have been a strong reason for this phycological 1 billion mark

I agree with your angle of thought as well... about the absorption of sudden capital inflow, but unless we get an idea where the money is being routed to, it is hard to know whether it is a good news or a bad one. Any further data on this might give a better insight.

If it is for investment, we should also see a correspondence with the FDI inflow as well.

 

[Meengla]

Well, if the overseas Pakistanis clearly saw that their remittance was doomed inside Pakistan then they could have invested in their respective host countries and/or other countries. Capital is more fluid than ever now. Almost every day I get emails from organizations like 'International Living' magazine about various investment opportunities, especially in central and south Americas. So people have choices.

Anyway, I think, there is probably a general perception in the Pakistani diaspora that their money will be safe in Pakistan and that it may even give good returns. Don't forget that before 2007--when there was relative peace inside Pakistan--the investment and general social climate inside Pakistan was upbeat. All it will take will be peace inside Pakistan again. I don't think Pakistani fiscal planners are dull-heads or the politicians of Pakistan are particularly worse off than their 3rd world counterparts. They will manage just as well as others. Certainly, when it comes to free judiciary and independent media Pakistanis are not bad at all. Politicians too will mature in time.

So...the fundamentals of Pakistani economy and of Pakistan as a good investment opportunity are enough to see the sustained and increasing remittance by the overseas Pakistanis.

You guys wait till there is peace in and around Pakistan's northwest. I am almost certain that the return for investments made now will make some very happy campers.

 

[muse]

Anyway, I think, there is probably a general perception in the Pakistani diaspora that their money will be safe in Pakistan and that it may even give good returns

And can we extrapolate that their capital may not be as safe or even welcome, as it once may have been or thought to have been, in the Gulf and the West?

I think, the posts here are very optimistic, these increases in remittances are occurring in the context of events of incredible Geo-strategic, and economic importance, we are not looking at events in which there is a greater sense of certainty and stability, in fact quite the opposite.

 

[Shabaz Sharif]

It just mean that now more and more Pakistanis are sending money back home throu formar channels.