khaleej times Sunday, OctOber 18, 2015
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An intertwined tale of remittances and prosperity Rising remittances from overseas Pakistanis have a major role to play in stabilising the country’s fiscal grounding and improving its economic conditions ■ Suneeti Ahuja-Kohli
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emittances to Pakistan are rising every year. From $15.8 billion in 2013-14 to $18.4 billion in 2014-15, overseas Pakistanis have sent home $34.28 billion in the last two years, and are making a significant contribution to the domestic economy. These contributions make up more than 6 per cent of the gross domestic product (GDP) of the country. In the first quarter of the economic cycle, from July to September, the country received $4.9 billion in remittances, registering a rise of 4 per cent compared with the same period last year. In September alone, Pakistan received $1.7 billion in remittances, a figure that is substantially higher than the amount received in August this year. Year-onyear remittances inflow in September is up 1.5 per cent and on month-on-month basis it is an astounding 16.3 per cent. Inflows pour in from around the world. Pakistani workers in Saudi Arabia sent the maximum in September at $483.21 million, closely followed by the UAE that remitted $428.1 million. Pakistani working population in the US and UK sent $260.97 million and $233.27 million respectively, and the Gulf countries together sent $201.3 million. Beyond the glaring rise in numbers and percentages is the real story of hardwork-
Bank on us ing Pakistani overseas workers and the impact they are making with their income. Consistent flow of money has made Pakistan one among the 20 odd countries whose remittances are fatter than the forex reserves. The remittances have stabilised the country’s external account; it fully covers the country’s petroleum imports. As per a recently published World Bank report, Pakistan’s foreign reserves coverage has swelled from below two months of imports to more than four months of import payments in the first half of the current 2015 fiscal, courtesy remittances. Pakistan government’s Pakistan Remittance Initiative (PRI) launched in 2009 has also propelled the rise of remittances through formal channels. In the last six years, remittances have risen 150 per cent and are expected to be more than $15 billion by the yearend, adding extra $9 billion to the country’s foreign exchange reserves, as per Sakib Sherani, Pakistan’s former economic advisor.
At the micro level, these remittances have helped in better maintenance of families back home and also bolstered the real estate market. The value of Pakistan’s real estate market is estimated to be ranging from $200 billion to $400 billion, with overseas Pakistanis investing about $3 billion every year. This essentially means that about 15 to 20 per cent of the remittances are invested in this sector. New ways and channels are now being explored and introduced to make the most of remittances in the real estate sector. Abu Dhabi, for instance, is hosting the first ever Pakistan Property Exhibition as part of the International Real Estate and Investment Show, IREIS 2015 from October 29 to 31. With the hardworking overseas Pakistanis and government’s progressive policy making, the country’s economy will continue to benefit from the rising remittances. — suneeti@khaleejtimes.com
HBL Fast Transfer, home remittance service, allows you to send money to Pakistan through HBL UAE ATMs HBL is the largest bank in Pakistan and in 1967 it became one of the first foreign banks to open a branch in the UAE. Since then, HBL has provided a wide range of personal, corporate and private financial products and services to customers through its branches in Dubai, Abu Dhabi, Al Ain and Sharjah. Reinforcing its reputation for developing innovative financial products and services that provide value and convenience to customers, Habib Bank Limited (HBL) UAE has recently launched ‘Remittance Through ATM’ — a unique new service that enables customers in
the UAE to remit money to Pakistan instantly and free through any of its ATMs or branch network in the country. Designed to provide an efficient and hassle-free remittance channel for the sizeable Pakistani expatriate community in the UAE, the free service allows HBL customers to avail 24/7 money transfers by accessing the bank’s ATM network in the country, while taking advantage of extremely competitive exchange rates. The service is an extension of the HBL FastTransfer product, which allows account holders of the bank to send remittances to pre-registered beneficiaries using any HBL ATM in the UAE. The launch of the ‘Remittance Through ATM’ service comes soon after HBL opened its eighth branch in the UAE and introduced its car loan product as well as small business loan by the name of Irtiqa, which caters to the financing needs of small and medium enterprises in the UAE.
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Sunday, OctOber 18, 2015 khaleej times
NRP BaNkiNg, SaviNg aNd RemittaNce
khaleej times ADVERTISING SUPPLEMENT
UBL NRP banking for overseas Pakistanis
United Bank Limited (UBL) is always at the forefront of offering state-of-the-art customised financial products and services catering to all customer segments. In addition to the 1300+ network of branches within Pakistan, UBL has an extensive international branch network covering the UAE, the GCC countries, Tanzania, China, Switzerland, UK and the USA. In these international locations, UBL has been serving the local communities as well as catering
to the specific financial needs of the Non Resident Pakistanis. Non Resident Pakistanis (NRPs) or people of Pakistani origin are a vital source of foreign exchange entering Pakistan by way of remittances. At present, it is estimated that there are more than 8 million Pakistanis living abroad. Middle East, Europe and America are the major remittance originating regions, making Pakistan the 7th largest remittance market in the world. To cater to the needs of the
NRP segment, UBL has recently launched “UBL NRP Banking” becoming the first bank in Pakistan to provide a comprehensive suite of products specifically designed for this segment. UBL NRP Banking offers a complete array of banking and investment services to NonResident Pakistanis — a holistic solution to the NRPs’ banking and investment needs, all under one roof supported by UBL’s world class technology platform. Offerings under this umbrella include Deposit accounts, Signature (High Net Worth Individuals) Banking, Car and Home Loans, Credit Cards, Mutual Funds, Internet and Mobile Banking and Access to Stock and Real Estate Markets. UBL’s NRP Banking Services are divided into NRP Banking for UAE, Oman, Qatar, Bahrain, UK, USA, China, Tanzania and Switzerland and Home Remittance Products (UBL Click N Remit, UBL Tezraftaar Cash, UBL Tezraftaar Pardes Card and Global Remittance Partners).
ADIB home finance makes buying Pakistan realty a reality For Pakistanis working in the UAE, buying a property in their home country is an aspiration that is becoming ever more attractive due to the dirham’s appreciation against the Pakistani rupee in recent years and growing optimism over the Pakistani economy. Many Pakistanis in the UAE are looking to preserve wealth for the future. Some are looking to invest in Pakistan while others are planning to buy a future home for themselves. However, these goals are often difficult to achieve as securing home finance in Pakistan is difficult from the UAE, and often offered at unattractive rates. This is why Abu Dhabi Islamic Bank (ADIB) is offering nonresident Pakistanis (NRPs) an easier solution, with its new dedicated financing facility. The bank is financing at profit rates as
low as 6.25 per cent, compared to the typical 11-13 per cent range offered in Pakistan. Unlike many banks in Pakistan, ADIB does not limit the home buyer to particular housing developments or developers. NRPs can also finance their new homes in Pakistan in dirhams at the best rate in the market, which eliminates the exchange risk when transferring money to Pakistan. This also gives the home buyer the flexibility to hold funds in the UAE and make transfers to Pakistan only as and when required. With ADIB, buying a home in Pakistan has never been easier.
NRPs can also finance their new homes in Pakistan in dirhams at the best rate in the market, which eliminates the exchange risk when transferring money to Pakistan.
For further advice on how to take advantage of the opportunity to make a long-term investment in Pakistan, call ADIB on 8002882 or visit www.adib.ae.
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Finance proceeds enable you to pay for new purchase at all stages of construction or to renovate your existing home. * Applied at the prevailing foreign exchange rate on the conversion date as per the terms & conditions. * Terms & conditions apply. Offered under finance for individuals program subject to UAE Central Bank guidelines and subject to salary transfer.
adib.ae
800 2882 [1178291]
khaleej times Sunday, OctOber 18, 2015
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