Wednesday, March 19, 2008

Growing Remittances Offer Lifeline To the Poor

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 foreign exchange and a stabilizing force for the economy in turbulent times."

In 2007, Indian workers sent back $27bn (£13.6bn), according to new figures from the World Bank. The other countries in the top five were China with $25.7bn, Mexico's $25bn, the Philippines at $17bn and France with $12.5bn.

The top country from which money was sent was the US with $42bn in recorded outward flows. It was followed by Saudi Arabia, Switzerland and Germany.

Global remittances from migrants are now three times as large as the flows of official government aid to developing countries.


remittance philippines said...

Remittances are playing an increasingly large role in the economies of many countries, contributing to economic growth and to the livelihoods of needy people.Thanks for this information.


Riaz Haq said...

#Pakistan ranks 8th with its 6 million strong diaspora sending $20 billion home in remittances via @ePakistanToday

Pakistan stands on the eight place among the top 10 recipients of remittances this year at $20.1 billion, according to a report.

According to Khaleej Times, the World Bank estimates that more than 247 million people, or 3.4 per cent of the world population, live outside their countries of birth among which more than six million are Pakistanis.

These Pakistanis, between July 2015 and January 2016, have sent an estimated $11.2 billion a marked increase of about 6 per cent compared with July 2014 to January 2015.

Overseas Pakistanis are remitting more than $1.5 billion a month, making a significant contribution to their families and bringing about a socio-economic change. The State Bank of Pakistan expects remittances to cross $20 billion this financial year, the highest ever and these expectations are in line with the World Bank’s calculations that place Pakistan on the eight rung among the top 10 recipients of remittances this year at $20.1 billion.

“The inflows from remittances (at current levels) now fully cover the country’s petroleum imports. Currently, international remittances are moving six per cent of the total GDP of Pakistan,” says Rizwan Wyne, a Pakistan-based expert on international remittances from Middle East to South Asia. The Migration and Remittance Factbook 2016 produced by the World Bank notes as of 2015 international migrants are expected to have sent $601 billion to their families in their home countries, of which developing countries like Pakistan received $441 billion.

At more than three times the size of development aid, international migrants’ remittances provide a lifeline for millions of households in developing countries. In addition, migrants hold more than $500 billion in annual savings. Together remittances and migrant savings offer a substantial source of financing for development projects that can improve lives and livelihoods in developing countries, says the report.