State bank of Pakistan reported that remittances sent by Pakistani workers working overseas increased in the first quarter of 2018-2019. According to the report, an amount of 5.419 billion dollars was remitted by the workers during the period from July 2017 to September 2018. Saudi Arabia remained the largest contributor to remittances in Pakistan following the USA and UK. Such an increase in the inflow of remittances is seen as a positive impact on the overall economy and growth of Pakistan.
Pakistan is known as one of the developing nations of the world. Remittance plays a crucial role in the development of Pakistan as it shares a sizeable part of the Gross domestic product. The increase in remittances indicates a positive sign for Pakistan’s economy.
Being one of the developing nations, Pakistan is facing a lot of hurdles regarding its economy. Fund transfers in the form of remittances help the families living in Pakistan to meet the ends and it boosts the economy. The capital inflow and the savings encourage people to invest which is a sign of markets developing and eventually causing an overall growth of the nation. These rising figures of remittances and the free flow of foreign currency can lift the economy upwards and the trend can continue if the state’s policy-making incentivizes its non-resident citizens and ensures that their foreign currency is safe.