A huge number of the diaspora send money to Pakistan from the UK and European countries. After India, Pakistan has the second-largest economy in South Asia. So there are good prospects to enhance UK exports of goods and services in this unsaturated and quickly rising market, with a burgeoning middle class and an attraction for UK knowledge, products, and brands.
In 2017, bilateral trade between the United Kingdom and Pakistan was £2.9 billion. Pakistan received £1.1 billion in goods and services from the United Kingdom. After China and the Netherlands, the United Kingdom is Pakistan’s 3rd biggest source of foreign direct investment.
By including Pakistani firms in their supply networks, British businesses can gain a competitive advantage. In addition, Pakistan wants to diversify and extend its export base to increase money transfer to Pakistan from the developed countries like the UK. It is currently competing in textiles, clothing, surgical equipment, steel, and sporting goods.
The following are important sectors for UK enterprises in Pakistan:
- services provided by professionals
- items for the consumer
What Is The Flow Of Remittance To Pakistan From The United Kingdom?
Despite the coronavirus outbreak, Pakistan has prevailed as the region’s “Manpower Export Leader,” sending roughly 224,705 people to various nations for various job assignments in 2020, beating other regional players such as Bangladesh and India.
Despite the difficult time of pandemic and third wave of coronavirus, expatriates continued upward trend of remittance by sending money to Pakistan online; in May 2021, remittances from Pakistanis working abroad surpassed $2 billion for the 12th month in a row, according to the State Bank of Pakistan (SBP), which attributed the record inflows to “proactive policy measures by the Government and the State Bank of Pakistan encouraging expats to use formal channels for their transactions.”
The central bank claims that “In May 2021, remittances totaled $2.5 billion, up 33.5 percent from the same month the previous year. These were also greater than the monthly average of $2.4 billion in the fiscal year 2020-21 from July to April.”
As the digital payment system is developing in the country, this increment inflow is due to online money transfers to Pakistan from developed countries. It went on to say that the majority of remittance inflows during July-May FY21 came from Saudi Arabia ($7 billion), the United Arab Emirates ($5.6 billion), the United Kingdom ($3.7 billion), and the United States ($2.5 billion).