Pakistan is a country that substantially depends on expatriates who send money to Pakistan as a remittance. Home remittances are the second-largest source of foreign currency in Pakistan’s economy, after exports. Banks, especially the National Bank of Pakistan, are doing an excellent job of funnelling the remittances of overseas Pakistani workers through normal banking channels, avoiding the use of Hawala and Hundi. Inflows of remittances can make a big difference in a country’s economic well-being. Evidence shows that monetary remittances play a crucial role in poverty alleviation, especially in developing countries like Pakistan.
Money transfers to Pakistan aid not only economic growth but also social development. Remittances to Pakistan have benefited districts such as Punjab, Sindh, and Baluchistan in particular. This should come as no surprise, considering that Pakistan is a poor economy with around 9 million people spread across the globe. Remittances to Pakistan act as a catalyst for investment, triggering a cycle of growth-promoting output, exports, consumption, wages, and, in turn, further investment.
Since several Pakistanis are emigrating for better job opportunities, the Pakistani government aims to increase online money transfer to Pakistan by making remittances cheaper, quicker, more convenient, and effective. According to data on Pakistan remittances by region, remittances from The UK, Australia, and other European countries contribute a significant amount totalling $205.43 million.
What Is The Amount Of Remittance Pakistan Receive From European Countries In 2021?
In April, Pakistanis earning their living abroad continued to send heavy remittances to their families and friends, totalling more than $2 billion, assisting the country in strengthening its foreign currency reserves and improving its ability to make international payments. In April 2021, the nation received $2.87 billion in remittances from migrants. Pakistan’s central bank announced on Monday that they are up 42 percent from $1.90 billion in the same month last year. Pakistan earned over $2 billion in remittances for the tenth month in a row in April.
The expatriates send money to Pakistan online for $303 million from the United Kingdom, an increase of 50% over the $201.5 million sent in the same month of 2020. Pakistanis in the EU sent $228.8 million, compared to $142 million in Pakistan. In January, the Diaspora sent $221.2 million from Malaysia, Norway, Switzerland, Australia, Canada, and Japan, compared to $159.1 million in January 2020.