South Asia Investor Review

Pakistan has received nearly $30 billion in worker remittances in fiscal year 2020-21, according to the  State Bank of Pakistan . This is a new record representing about 10% of the country's gross domestic product (GDP). This money helps the nation cope with its perennial current account deficits. It also provides a lifeline for millions of Pakistani families who use the money to pay for food, education, healthcare and housing. This results in an increase in stimulus spending that has a multiplier effect in terms of employment in service industries ranging from retail sales to restaurants and entertainment.  Overseas Pakistani Workers' Remittances. Source: Arif Habib Pakistan's share of working age population (15-64 years) is growing as the country's birth rate declines, a phenomenon called demographic dividend. This dividend is manifesting itself in high levels of worker exports and  record remittances  pouring into the country. Saudi Arabia and the United Arab Emir...

Pakistan reported over 20 per cent growth in remittances from overseas Pakistanis during the first 8 months of fiscal 2007-8. The country ranked number 12 in the world with over $4b in this period. High oil prices and strong economies in the oil-exporting Middle Eastern countries are contributing to strong demand for migrant laborers. According to a report titled "Remittance Trends 2007" by the World Bank , the flow of remittance globally continues with a robust growth with developing countries taking the lead as major recipients. The growth of remittances to developing countries remains robust because of strong growth in Europe, Middle East and Asia. Total global remittances in 2007 were estimated by the World Bank to be $318bn of which $240bn went to people in developing countries. "In many developing countries, remittances provide a life-line for the poor," the World Bank's senior economist Dilip Ratha told the BBC. "They are often an essential source of...