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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