RemittancesGateway.org

Pakistan remittances from GCC may hit $9b

Wednesday, 27 July 2011 09:18

Source: Khaleej Times
By: Muzaffar Rizvi

Remittances from GCC states to Pakistan may cross $9 billion in the new financial year as the government plans fresh measures to boost inflows from the UAE and Saudi Arabia, a senior government official said.

Overseas Pakistanis residing in Gulf Cooperation Council countries sent home a record $6.573 billion in remittances in the previous 2010-11 financial year, reflecting a 58 per cent share in total remittances of $11.2 billion. The total remittances are expected to cross $14 billion in new fiscal year amid hopes that the expatriates working in the GCC region will continue the same growth patron.

“The government plans to offer new incentives to overseas Pakistanis and further reforms in the banking system to accelerate remittances inflows from the United States, United Kingdom and the GCC — the top three contributors in remittances,” the finance ministry official, requesting anonymity, told Khaleej Times.

He said all the diplomatic missions abroad have been directed to take immediate steps to boost remittances inflows by facilitating the overseas Pakistanis in sending funds through official channels.

Saudi Arabia and the UAE emerged as the top Gulf nations on the remittance table as expatriates working in the two countries sent $5.267 billion in fiscal year 2010-11, while the overseas Pakistanis in Kuwait, Qatar, Bahrain and Oman remitted $1.306 billion during the financial year that ended in June.

Remittances from the UAE crossed the $2.5 billion mark for the first time as the 1.2 million expatriates in the country sent a record $2.597 billion in 2010-11 compared to $2.038 billion in previous fiscal year. Abu Dhabi and Dubai contributed the major share with $1.328 billion and $1.201 billion, respectively. Remittances inflows from Abu Dhabi exceeded Dubai for the first time and the trend is likely to continue           this year.

“The embassy is introducing certain new measures to enhance the foreign exchange remittances to Pakistan. We are trying to increase the remittances inflows up to $3.8 billion in the new financial year,” Jamil Ahmed Khan, Ambassador of Pakistan to the UAE, told Khaleej Times.

The State Bank of Pakistan, or SBP, said that remittances witnessed a 25 per cent annual growth in last fiscal year inviting attention of the economic managers to exploit the opportunity for enhancing remittances to the maximum. The rising remittances, second major source of foreign exchange earnings after exports, practically helped the country with a surplus account and record foreign exchange reserves despite high oil prices and costly imports.

“The government and Pakistani missions here are encouraging people to remit through banks and those honoured for the highest remittances will be facilitated with the best services both at the Embassy and the Consulate General in Dubai,” Bilal Pasha, Commercial Counselor at the Pakistan Embassy, said.

According to an official at the Pakistan Consulate in Dubai, the $3.8 billion remittances target in 2011-12 is not an ambitious figure and it will be achieved through a three-pronged strategy.

“More than 1.2 million Pakistanis are living in the UAE and majority of them is engaged in blue collar jobs in Abu Dhabi, Dubai and Sharjah. We are expecting $840 million remittances inflows from this segment while white collar, salaries and professionals may contribute $1.2 billion in 2011-12,” he said adding that the lion share will come from traders and businessmen who may contribute up to $1.8 billion by sending $15,000 on average in the new fiscal year.

Analysts said the rising foreign remittances has not only brought stability to the value of the Pakistani rupee, but also played key role in narrowing down the gap between the foreign payments and receipts.