Pakistan Migrant Workers Sent $5.493bn Remittances

Islamabad, Pakistan | August 03, 2007 by D-8 Secretariat

One of the concerns of D-8 Organization in the economic issues for reducing poverty is remittances, that sent by their member states' migrant workers. Bangladesh, Egypt, Indonesia, Nigeria, and Pakistan are D-8 member states of migrant worker supplier in the world, beside countries from South America .

Nowadays in the world terms of  migrant workers potency: "as millions go north and west, billions back to south and east" is a popular among international organizations and international finance institutions such as the ILO, World Bank, IDB, and ADB.

Secretary General of D-8, Dipo Alam, urges members states to pay attention in this potential issues both for humanity and economic purposes, by establishing a Working Group on Migrant Workers and Remittances.

In this website, news of Bangladesh remittance was reported lately, now is Pakistan report on remittances. Pakistan received the highest ever amount of more than $5.493 billion as workers' remittances during the last fiscal year 2006-07. According to the SBP, never before in the history of Pakistan , the country received more than $4.6 billion as workers' remittances.

In the recently concluded fiscal year 2006-07, Pakistan received an amount of $5.494 billion as against over $4.600 billion in 2005-06, showing an increase of $893.53 million or 19.42 per cent. The amount of $5,493.65 million includes $2.68 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).

During last month (June 2007), Pakistani workers remitted an amount of $505.55 million, up $41.68 million or nine per cent when compared with an amount of $463.87 million sent home in June 2006.

The inflow of remittances in the July 2006 to June 2007 period from US, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $1,459.64 million, $1,023.56 million, $866.49 million, $757.33 million, $430.04 million and $149 million, respectively as compared to $1,242.49 million, $750.44 million, $716.30 million, $596.46 million, $438.65 million and $119.62 million, respectively, in July 2005 to June 2006 period.

Remittances received from Norway , Switzerland , Australia , Canada , Japan and other countries during the fiscal year 2006-07 amounted to $804.91 million as against $724.07 million in the fiscal year 2005-06, showing a rise of 11.16 per cent or $80.84 million.

The monthly average remittances for the period July 2006 - June 2007 comes out to $457.80 million as compared to $383.34 million during the same corresponding period of the last fiscal year, registering an increase of 19.42 per cent.

The inflow of remittances into Pakistan from most of the countries of the world increased last month as compared to June, 2006.

According to the break-up, remittances from US, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $140.17 million, $96.47 million, $95.39 million, $68.16 million, $37.45 million and $12.47 million, respectively, as compared to the corresponding receipts from the respective countries during June 2006, i.e. $123.15 million, $79.51 million, $80.76 million, $59.07 million, $38.65 million and $9.70 million. These remittances have been a major source of help to fill the trade deficit gap in Pakistan as imports grow fast while exports are moving up slowly.

Remittances received from Norway , Switzerland , Australia , Canada , Japan and other countries during June, 2007 amounted to $55.33 million as compared to $72.04 million during June 2006.

Dipo Alam says in his office, lately, that "remittances that sent to the families of migrant workers usually applied for food, health, education, shelters, and capital for microenterprises. This will support government programs to reduce poverty as expected by the UN in the MDGs."

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