You can send money to Pakistan from any corner of the world in this modern era of technology. Inflows of remittances can make a big difference in a state’s financial well-being. Evidence shows that monetary remittances play a major role in poverty alleviation, especially in developing countries like Pakistan.
Inflows of remittances to Pakistan aid not only economic growth but also social development. Remittances to Pakistan have benefited districts such as Punjab, Sindh, and Baluchistan in specific. This should goes without saying, considering that Pakistan is a weak economy with a population of around 9 million people spread across the globe.
Remittance act as a catalyst for development, triggering a cycle of growth-promoting output, exports, consumption, wages, and, in turn, further investment. This is why the Pakistan remittance initiative was established.
How Is Pakistan Remittance Helping Expatriates And Economy Of The Country?
The Pakistan Remittance Initiative was established in 2009 as a joint effort of the State Bank of Pakistan, the Ministry of Overseas Pakistanis, and the Ministry of Finance. Its purpose is to make money transfers to Pakistan easier, quicker, and less expensive.
What Is Asaan Remittance Account And How It Works To Increase Remittance To The Country?
Since remittances have been important since Pakistan’s freedom, the initiative aims to attract foreign investment while also addressing the issue of unofficial remittance networks. The State Bank of Pakistan has successfully restricted the inflow of remittances through informal networks known as hundi and hawala in coordination with the Federal Investigation Agency (FIA), in the hopes of encouraging the use of formal channels like sending money to Pakistan online through service provider regulated or approved by the government of Pakistan.
It has introduced the Asaan [Easy] Remittance Account and an m-wallet scheme to aid in the facilitation of remittance inflows via formal channels and to provide a convenient forum for nationals living abroad to move funds. Since capital flows from countries that have traditionally contributed a large share of Pakistan’s remittances are on the decline, the success of this initiative is critical for the country.
What Are The Main Advantages Of Remittance To A Developing Country?
Remittances have increased dramatically in recent decades, attracting the attention of academics and politicians and sparking discussion about their benefits and drawbacks. Online money transfer to Pakistan as remittance will help family members who have been left behind as well as raise the economies of receiving countries. They may also foster a culture of dependence in the receiving country, resulting in lower labor force participation, increased conspicuous consumption, and slowed economic development. In order to construct specific policy initiatives that will enable developed economies to benefit the most from these monetary inflows, a better understanding of their effects is needed.