World Bank projects $20.9 bln remittances for Pakistan in 2018
According to a report by the World Bank, it is estimated that Pakistan’s remittances in 2018 will be a total of $20.9 billion( 6.2% increase).
Pakistan is the 7th largest receiver of remittances in the world, while India stands at number 1 out of 10, with $79.5 billion. As per the reports, Pakistan was placed 2nd after India in South Asia.
The World Bank report reveals that during 2017 and 2018, the number of jobs in the Gulf Cooperation Council (GCC) countries has fallen.
This was emphasized by lower placements in Pakistan. As mentioned in the World Bank report, the average remittance in South Asia was the lowest in the world, in the 3rd quarter of 2018.
This was still higher than the 2nd quarter at 5.2% as it rose to 5.4%. Since early 2017, a continuous fall was experienced.
The labor force of Pakistan in foreign countries has also decreased by 41%, from 0.83 million in 2016 to 0.5 million in 2017.
The remittances are expected to rise by 13.5% in South Asia, leading to $132 billion in 2018. The reason behind this increase is the growth in the economic sector in the leading economies, like the US and GCC countries.
The increase in oil prices has proven favorable for the UAE as it recorded a 13% increase in leaks for the start of 2018. World Bank forecasts a 10.8% rise in remittances to developing economies in 2018. Worldwide remittances could increase by 10.3%.
State Bank of Pakistan published that Pakistanis living abroad remitted $7.419 billion from July to October of the fiscal year 2018-2019. Last year, it was only $6.44 billion. In the month of October 2018, workers remitted around $2 billion. This is 37.7% greater than the previous month, i.e. September.