Remittances From Pakistani Diaspora Soared 21X Since Year 2000

[RiazHaq]

Remittance inflows from Pakistani diaspora have jumped 21-fold from about $1 billion in year 2000 to $21 billion in 2018, according to the World Bank. In terms of GDP, these inflows have soared nearly 7X from about 1% in year 2000 to 6.9% of GDP in 2018.

Meanwhile, Pakistan's exports have declined from 13.5% of GDP in year 2000 to 8.24% of GDP in 2017. At the same time, the country's import bill has increased from 14.69% in year 2000 to 17.55% of GDP in 2017. This growing trade imbalance has forced Pakistan to seek IMF bailouts four times since the year 2000.

It is further complicated by external debt service cost of over $6 billion (about 2% of GDP) in 2017. Foreign investment in the country has declined from a peak of $5.59 billion (about 4% of GDP) in 2007 to a mere $2.82 billion (less than 1% of GDP) in 2017. While the current account imbalance situation is bad, it would be far worse if Pakistani diaspora did not come to the rescue.

Diaspora Remittances:

Estimated inflows of $20.9 billion make Pakistan the world's 7th largest recipient of remittances for 2018, according data released by the World Bank in its latest "Migration and Remittances" report of December 2018. In South Asia region, Pakistan is the second largest recipient of remittances of $20.9 billion after top-ranked India's $79.5 billion.

Pakistan Remittances in Millions of US Dollars. Source: World Bank

Remittances from Pakistani diaspora have grown nearly 21-fold since the year 2000. Pakistanis sent home remittances adding up to 6.9% of the country's GDP in 2018, up from 1% back in year 2000.

Pakistan's Trade:

In 2017, Pakistan exported goods and services worth $25 billion while it importsamounted to $54 billion, a trade deficit of $29 billion for the year. This is a dramatic deterioration from about $2 billion trade deficit (2% of GDP) in year 2000 to $35 billion trade deficit (11% of GDP) in year 2017.

Pakistan Trade Deficit in Billions of US$. Source: World Bank

Pakistan's exports have declined from 13.5% of GDP in year 2000 to 8.24% of GDP in 2017. At the same time, the country's import bill has increased from 14.69% in year 2000 to 17.55% of GDP in 2017.

Pakistan FDI. Source: The Global Economy

Foreign Direct Investment:

Foreign direct investment (FDI) in Pakistan was a mere $2.82 billion (less than 1% of GDP) in 2017, down from a peak of $5.59 billion (4% of GDP) in 2007. The lack of foreign investment has contributed to the country's dwindling reserves and balance of payments difficulties requiring it to seek yet another IMF bailout.

Pakistan's External Debt. Source: State Bank of Pakistan via Dr. Ishrat Husain

Pakistan's Debt:

Significant growth in remittances from Pakistani diaspora has clearly helped but the external accounts gap is too big for it. This has forced Pakistan to borrow heavily in recent years. It has raised debt service costs and put pressure on Pakistan's reserves.

Summary:

Remittances from Pakistani diaspora have jumped 21-fold from about $1 billion in year 2000 to $21 billion in 2018, according to the World Bank. In terms of GDP, these inflows have soared nearly 7X from about 1% in year 2000 to 6.9% of GDP in 2018. Meanwhile, Pakistan's exports have declined from 13.5% of GDP in year 2000 to 8.24% of GDP in 2017.

Foreign investment in the country has declined from a peak of $5.59 billion (about 4% of GDP) in 2007 to a mere $2.82 billion (less than 1% of GDP) in 2017. At the same time, the country's import bill has increased from 14.69% in year 2000 to 17.55% of GDP in 2017. This growing trade imbalance has forced Pakistan to seek IMF bailouts four times since the year 2000. It is further complicated by external debt service cost of over $6 billion (about 2% of GDP) in 2017. While the current account imbalance situation is bad, it would be far worse if Pakistani diaspora did not come to the rescue.

http://www.riazhaq.com/2018/12/remittances-from-pakistani-diaspora.html

 

[asadqudsi]

I wonder how much for this money is actually money made in Pakistan by corruption and brought back into country in guise of foreign remittances?

 

[islamabadi]

It means millions of people have gone abroad over the years because you have suffocated business and done nothing to generate employment in the country. Foreign direct investment is less than 1% of GDP wherreas it was over 5% in 2007.....that should tell you foreign direct investment is practically zero. When you have a government in place (including the current) who places unjust taxes upon the population then what do you expect? I CHALLENGE any person on this site to tell me ANY country in the world in which BANKS charge the customer money to take out their own money. Koi hai misaal? dunya k sabsey thakay huwe...most corrupt most backward african country ki bhi example nahi.....but here the government charges 0,3% tax to withdraw YOUR OWN money even when you are a tax filer and 0,6% if you are a NON filer. So what do smart people do? Take money OUT from formal economy and into the BLACK economy. You discourage people from saving money in banks which the banks can then lend and there is less money in circulation. Your formal economy stagnates and black economy thrives. This was started by PMLN...but Asad Umar didnt change it and in fact approved it. ye hai gaddhon ki hakumat... in gadhon se umeed ki ja rahi hai k laengey foreign investment....ek bhi economist nahi hai yahan..

 

[Dr Adam]

http://www.riazhaq.com/2018/12/remittances-from-pakistani-diaspora.html

Remittance inflows from Pakistani diaspora have jumped 21-fold from about $1 billion in year 2000 to $21 billion in 2018, according to the World Bank. In terms of GDP, these inflows have soared nearly 7X from about 1% in year 2000 to 6.9% of GDP in 2018.

Meanwhile, Pakistan's exports have declined from 13.5% of GDP in year 2000 to 8.24% of GDP in 2017. At the same time, the country's import bill has increased from 14.69% in year 2000 to 17.55% of GDP in 2017. This growing trade imbalance has forced Pakistan to seek IMF bailouts four times since the year 2000. It is further complicated by external debt service cost of over $6 billion (about 2% of GDP) in 2017. Foreign investment in the country has declined from a peak of $5.59 billion (about 4% of GDP) in 2007 to a mere $2.82 billion (less than 1% of GDP) in 2017. While the current account imbalance situation is bad, it would be far worse if Pakistani diaspora did not come to the rescue.

Diaspora Remittances:

Estimated inflows of $20.9 billion make Pakistan the world's 7th largest recipient of remittances for 2018, according data released by the World Bank in its latest "Migration and Remittances" report of December 2018. In South Asia region, Pakistan is the second largest recipient of remittances of $20.9 billion after top-ranked India's $79.5 billion.

Pakistan Remittances in Millions of US Dollars. Source: World Bank

Remittances from Pakistani diaspora have grown nearly 21-fold since the year 2000. Pakistanis sent home remittances adding up to 6.9% of the country's GDP in 2018, up from 1% back in year 2000.

Pakistan's Trade:

In 2017, Pakistan exported goods and services worth $25 billion while it importsamounted to $54 billion, a trade deficit of $29 billion for the year. This is a dramatic deterioration from about $2 billion trade deficit (2% of GDP) in year 2000 to $35 billion trade deficit (11% of GDP) in year 2017.

Pakistan Trade Deficit in Billions of US$. Source: World Bank

Pakistan's exports have declined from 13.5% of GDP in year 2000 to 8.24% of GDP in 2017. At the same time, the country's import bill has increased from 14.69% in year 2000 to 17.55% of GDP in 2017.

Pakistan FDI. Source: The Global Economy

Foreign Direct Investment:

Foreign direct investment (FDI) in Pakistan was a mere $2.82 billion (less than 1% of GDP) in 2017, down from a peak of $5.59 billion (4% of GDP) in 2007. The lack of foreign investment has contributed to the country's dwindling reserves and balance of payments difficulties requiring it to seek yet another IMF bailout.

Pakistan's External Debt. Source: State Bank of Pakistan via Dr. Ishrat Husain

Pakistan's Debt:

Significant growth in remittances from Pakistani diaspora has clearly helped but the external accounts gap is too big for it. This has forced Pakistan to borrow heavily in recent years. It has raised debt service costs and put pressure on Pakistan's reserves.

Summary:

Remittances from Pakistani diaspora have jumped 21-fold from about $1 billion in year 2000 to $21 billion in 2018, according to the World Bank. In terms of GDP, these inflows have soared nearly 7X from about 1% in year 2000 to 6.9% of GDP in 2018. Meanwhile, Pakistan's exports have declined from 13.5% of GDP in year 2000 to 8.24% of GDP in 2017. Foreign investment in the country has declined from a peak of $5.59 billion (about 4% of GDP) in 2007 to a mere $2.82 billion (less than 1% of GDP) in 2017. At the same time, the country's import bill has increased from 14.69% in year 2000 to 17.55% of GDP in 2017. This growing trade imbalance has forced Pakistan to seek IMF bailouts four times since the year 2000. It is further complicated by external debt service cost of over $6 billion (about 2% of GDP) in 2017. While the current account imbalance situation is bad, it would be far worse if Pakistani diaspora did not come to the rescue.


http://www.riazhaq.com/2018/12/remittances-from-pakistani-diaspora.html

پھر بھی اِس قوم کے ناشُکرے اور میڈیا کے عقلِ کُل ہم لوگوں پر طنز کے نِشتر چلانے اور گالیوں کی حد تک جانے سے نہیں چُوکتے

الله اِن ناشُکروں کو ہدایت دے ، آمین

 

[JohnSnow]

I wonder how much for this money is actually money made in Pakistan by corruption and brought back into country in guise of foreign remittances?

Absolutely, for the last 10 years this is what they have been doing. But inshallah not anymore. Now all corrupts will served justice.

On another note, we must come up with a plan to help settle more new Pakistanis abroad so they these remittances can be increased even more.

 

[RiazHaq]

I think PTI government needs to do two things : Cut non-essential imports and diversify/grow exports.

Livestock, meat and poultry exports into the huge halal market is a great idea. Argentina and Brazil have built their economies on such exports.

At the same time, Pakistan needs to focus on high value added exports such as IT and aviation.

Pakistan's high tech exports last year surged past a billion US$ and growing at double digit rates.

https://www.riazhaq.com/2018/08/state-bank-pakistan-it-exports-surge-to.html

And over a dozen countries are now buying and deploying Pakistan made Mushshak trainer airplanes based on Cessna design.

https://www.riazhaq.com/2016/12/pakistan-made-airplanes-lead-nations.html

 

[RiazHaq]

#Diaspora #Remittances to #Pakistan Soar 21X Since Year 2000. Estimated inflows of $20.9 billion not enough to cover the country's $35 billion trade deficit. #trade #investment https://www.southasiainvestor.com/2018/12/diaspora-remittances-to-pakistan-soar.html …

 

[RiazHaq]

I wonder how much for this money is actually money made in Pakistan by corruption and brought back into country in guise of foreign remittances?

Corrupt people who steal money from Pakistan keep it abroad in the form of properties in Dubai, London and elsewhere. They do not bring it back. It's the hard-working Pakistani diaspora that sends remittances home to Pakistan.