Digital platforms are widely used to send money to Pakistan during 2020-2021. Pakistan was among the top-10 recipients among low- and middle-income countries. The nation earned $26 billion last year compared to Other countries like India ($83bln), China ($60bln), Mexico ($43bln), Philippines ($35bln), Egypt ($30bln), Bangladesh ($22billion), Nigeria ($17billion), Vietnam ($17billion) and Ukraine ($15bln). According to the latest estimates from the State Bank of Pakistan (SBP), remittances reached $2.7 billion in March 2021, up 20% from the previous month and 43% higher compared to March 2020. From July to March in Fiscal 21, remittances totaled £15.24 billion, up 26% from the same span in Fiscal 2020.
Pakistan has the second-highest dependence on international money transfers to Pakistan, at 9.9% of GDP, after Nepal (23.5%). After India, it is the second-largest recipient in South Asia. In 2020, remittance flowed remained stable, declining at a slower rate than previously expected. According to the new Migration and Development Brief, officially registered remittance flows to low- and middle-income economies totaled £382 billion in 2020, just 1.6 percent less than the total of £388 billion in 2019.
What Are The Major Factors Of Consecutive Increasing Remittance To Pakistan?
Government and SBP proactive policy initiatives to promote further inflows through formal channels, restricted cross-border transportation in the face of the COVID-19, medical expenses and altruistic transfers to Pakistan in the middle of the global epidemic, and orderly foreign exchange market conditions are all contributing to the sustained increase in workers’ send money to Pakistan online as a remittance. The continued growth in workers’ money transfers is also being aided by orderly foreign exchange market conditions.
Remittance flows’ relatively strong output during the COVID-19 crisis has also highlighted the importance of timely data availability. Given its increasing importance as a source of external funding for low- and middle-income economies, better data on remittances is required, both in terms of frequency and timely reporting, as well as granularity by corridor and channel. The World Bank assists member states in tracking the flow of remittances across various networks, the costs and convenience of sending money, and the regulations that affect remittance flows to maintain financial integrity. It is collaborating with the G20 and the rest of the world to lower remittance costs and increase financial inclusion for the vulnerable. The implementation of Roshan Digital Accounts (RDAs) is helping to maintain the upward trend in remittances. The initiative of the Roshan digital account for expatriates of Pakistan has highly increased online money transfer to Pakistan.