Pakistan is one of the most labour-sending states in the South-Asian region. Due to currency devaluation, political disputes and lower-earning opportunities, a considerable population of Pakistanis have moved abroad to earn for their families and loved ones. There is no doubt in the fact that migrants send money to Pakistan, substantially.
What are the Top-Destinations for Pakistani Migrants?
The most recent statistics reported that almost 16.6$ billion were transferred by Pakistani Migrants to their home country within 2018 only. So, the question arises that where do the migrant Pakistanis get the employment opportunities? The answer is the middle east region. More than 96% of the total migrants are currently working in the United Arab Emirates and Saudi Arabia. Overall, we can say that Gulf Countries are the top destination for migrants of Pakistan.
Other than the Gulf Countries, some other notable destinations for the migrants of this state are:
- United States
- United Kingdom
For the enhancement of international money transfer to Pakistan, the Government is taking many necessary steps. Recently an incentive for all the overseas working Pakistanis has announced, which will appreciate the international cash flow in the state of Pakistan.
What are the Benefits to Economy Through Online Money Transfer?
There is a multitude of underlying benefits, behind a single money transfer. The remittance industry is one of the significant earning sectors in the developing states. The major benefits which Pakistan’s economy is receiving due to foreign cash transfers are listed below.
- International Remittance flow has a direct and positive relationship with the poverty line of the state. Cash Transfers help people in fulfilling their daily expenses, which allows alleviating the poverty in the people.
- Almost 60–70% of the household expense is met by utilizing the money received by a migrant who is working abroad. This highlights the fact that international remittances are helping Pakistanis in fulfilling their daily household needs.
- It has a long-term and positive impact on the other aspects of state such as education, living style and national growth. It is helping in improving the national GDP, and it has the greatest contribution in foreign exchange of the state. These factors are leading to economic stability, which has enabled the Government to make better strategies for the welfare of its people.
What are the Benefits to Other Industries if You Send Money Online?
Many other industries such as Tourism, Money Transfer Providers and Foreign Investments have been significantly benefited due to foreign cash exchange. The need to send money online has given birth to many money transfer companies in South-Asia Region. Several emerging platforms, such as Ace Money Transfer is helping people in transferring payments online with optimized exchange rates and credible services.
The ease to rotate cash in the South-Asian region is also benefiting other countries, despite Pakistan. People can now send money to Pakistan online, or any other state by some clicks only. Although remittance industry makes only 1% of the global GDP, still its contribution to the welfare of different countries is ascertained.
How to Calculate Hidden Charges in Money Transfer?
When people send money to another country, they usually assume that all of the deducted charges are due to the currency exchange rates. But that’s not true! Each international bank has an incentive ratio, that they charge on every transaction. How can a person calculate hidden charges before he/she send money online? And how can you choose the best provider that is offering the lowest hidden charges? The trick is simple yet efficient. You can identify the actual rate and hidden fee in three steps.
- The open market exchange rates are available on many online sites. Before you send money online, make sure to check the forex exchange rates. From there, you will get the “Actual Exchange Rate”. As they may vary daily, make sure to check these rates on the same day of payment transfer.
- Talk to your bank or IMT provider and take a quote.
- Now divide the actual exchange rates by the rates provided by your bank. You will get the value that is transferred.
- Subtract the results from the total money that was sent. You will get the hidden fee that any bank is charging.
What is the Right Method for Checking the Hidden Money Transfer Fee?
Here is an example that will help you in better understanding the method of calculating the unexposed fee of your transfer.
- Check the exchange rates firstly before you transfer money to Pakistan online. Currently, one us dollar is equivalent to 154.85 PKR
- Get the quote from your bank. Let’s suppose your bank is offering 29668 PKR on transferring 200$.
- Divide 29668PKR with 154.85 PKR, and then subtract the value from 200. 4.6$ is the hidden fee that your bank was charging.
If you are sending a large amount such as 2000 or 5000 dollars, then even a 2% hidden fee can cost a lot. You must have to pay a hidden fee whenever you use a bank for international transfer. But, companies offering money transfer to Pakistan online usually do not have a hidden fee. Even if some of them charge any incentive, then it will be far lower than that of banks. To get the best rates and pay minimum hidden charges, try to use Ace Money Transfers for international transfers. Their service charges are as low as 0$. However, they may vary from country to country.
For money transfer to Pakistan, different methods are introduced by money transfer companies. Popular methods are still cash pickup and bank transfer. Aside from this, money transfer companies are also providing the facility to pay bills from any other country. This is a great facility both at the end of a sender and a receiver. If you are an expat and want to send money online, check these methods on a priority.