Overseas Pakistani workers remitted $4,698.31 million in first three months (July to September) of fiscal year 2016, down from $4965.81 million received during the same period in the preceding year.
During September 2016, the inflow of worker’s remittances amounted to $1,609.29 million, which is 8.60% lower than August 2016 and 9.34% lower than September 2015.
The country wise details for the month of September 2016 show that inflows from various countries remained as following:
- Saudi Arabia:Â $437.87 million (Sep 2015:Â 483.21 million)
- UAE:Â $361.89 million (Sep 2015:Â $428.13 million)
- USA:Â $210.82 million (Sep 2015:Â $ 260.43 million)
- UK:Â $210.18 million (Sep 2015:Â $233.27 million)
- GCC countries (including Bahrain, Kuwait, Qatar and Oman):Â $182.16 million (Sep 2015:Â $201.34 million)
- EU countries:Â $43.6 million (Sep 2015:Â $33.31 million)
Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during September 2016 amounted to $162.77 million together as against $135.46 million received in September 2015.
Slow inflows of foreign currency were witnessed from Saudi Arabia, United Arab Emirates (UAE), United States of America and United Kingdom during the period under review.
Analysts are expecting that cash flow would further weaken in the coming months as the Middle East’s economic slowdown has hit Pakistan workers living there.
Pakistan received an amount of $1.323 billion from the workers living in Saudi Arabia in July-September quarter of the current fiscal year, compared with $1.440 billion during the same quarter of the last fiscal.
Analysts said low oil prices and recently taken economic reforms in the Middle East are causing slow down in remittance inflows. Analysts expect Pakistan to witness a shortfall of up to one billion dollar in remittances from Saudi Arabia during the current fiscal year.
I once read comments of some saying we don’t need these remittances (talking on topic of expensive calling termination to Pakistan which is making calling Pakistan very expensive and about so called illegal VoIP ). Such people will not realize effect of less remittances sent to Pakistan but government definitely will. Sadly every government has treated overseas Pakistani just as a source of remittance. No respect once you land, you are greeted by plain faced rude FIA immigration staff. Only voip operator which was operational was forced to close its business and now majority of overseas Pakistanis use European voip operators and nothing goes to government of Pakistan. If they would have allowed voip servers based in Pakistan to offer services globally this money would have gone nowhere but to Pakistan.
2016 not 2017 in the first para.
Sad thing is current economy is not producing 6% growth. We need 6% growth for several years in a row to really be better off. And also,, remittances are going to go way way down especially from Saudi Arabia in the next few years, which is going to lead to a massive crunch.
Governt should ask another bail out from Saudi Arabia and then loot the cash.
There is much more to this “story” — the reason hy global remittances are dropping is all part of the plan to “choke” Pakistan economically and all parties involved are on the same page with this.
Try reading more on India’s plan to squeeze us on this — Doval’s speech in one of the colleges regarding collapsing Pakistan economically, had this strategy of squeezing out every Pakistani possible by getting them fired from Middle Eastern jobs as well as USA (which is now the “best buddy” of India).
But no harm done . . . a couple of sari’s and crates of mangoes should solve all the problems, right?
No idea what you’re talking about. In reality, remittances are dropping to India as well from GCC. Google for economic news links
It’s the global economy, and low oil prices.