Sunday, May 1, 2022

European Union: Fastest Growing Source of Remittances to Pakistan

Remittances from the European Union (EU) to Pakistan soared 49.7% in FY 21 and 28.3% in FY22, according to the State Bank of Pakistan. With $2.5 billion remittances in the first 9 months (July-March) of the current fiscal year, the EU ($2.5 billion) has now surpassed North America ($2.2 billion) to become the third largest source of inflows to Pakistan after the Middle East and the United Kingdom. Remittances from the US have grown 21%, second fastest after the EU (28.3%) in the first 9  months of the current fiscal year. 

Country-wise Remittance Inflows in Pakistan. Source: State Bank of Pakistan

Pakistanis in European Union: 

The population of Pakistan-born migrants to European Union countries has been growing in recent years. With over 120,000 Pakistani migrants, Italy is the most popular destination for Pakistanis in the EU. 

Italy is followed by Germany with 75,495 Pakistani migrants. Then comes Spain with 61,953 migrants, France 21,900 (2017), Sweden 11,674, Denmark 10,669, Ireland 7,351 (2016), Belgium 5,927, Portugal 5,310, Norway 5,157, Netherlands 4,723 and Austria 4,112. There are smaller populations of Pakistanis in several other European countries. 

Pakistan-born Migrants in European Union. Source: OECD

With $5.74 billion in the first 9 months of current fiscal year FY22, Saudi Arabia remains the top source of remittances to Pakistan, followed by $4.28 billion from the United Arab Emirates (UAE). However, the Saudi remittances are essentially flat while those from the UAE have declined 5.3% in this period.  Pakistani diaspora is sending home over $30 billion a year, about 10% of the country's GDP. It is badly needed foreign exchange to balance Pakistan's external accounts.  

Pakistan's Worldwide Diaspora:

Over 10 million Pakistanis are currently working/living overseas, according to the Bureau of Emigration. Before the COVID19 pandemic hit in 2020,  more than 600,000 Pakistanis left the country to work overseas in 2019. The average yearly outflow of Pakistani workers to OECD countries (mainly UK and US) and the Middle East has been over half a million in the last decade.  

Pakistan’s economy created 5.5 million domestic jobs during the past three years –on an average 1.84 million jobs a year, which is far higher than yearly average of creation of new jobs during the 2008-18 decade, according to the Labor Force Survey (LFS) published by the Pakistan Bureau of Statistics (PBS). 

Pakistan ranks 6th among the top worker remittance recipient countries in the world.  India and China rank first and second, followed by Mexico 3rd, the Philippines 4th, Egypt 5th and Pakistan 6th.  

Pakistan Demographics
Pakistan's Demographic Dividend: 

About two million Pakistanis are entering the workforce every year. The share of the working age population in Pakistan is increasing while the birth rate is declining. This phenomenon, known as demographic dividend, is coinciding with declines in working age populations in developed countries. It is creating an opportunity for over half a million Pakistani workers to migrate and work overseas, and send home record remittances. These overseas Pakistanis are now sending home over $30 billion a year, about 10% of the country's GDP. It is badly needed foreign exchange to balance Pakistan's external accounts.  

Projected Population Decline in Emerging Economies. Source: Nikkei Asia



18 comments:

samir sardana said...

Rising Oil and Gas is going to wipe out EU

Inflation and unemployment will rise.Govtt will cut costs and subsidies - will outsource,and look for cheap labour,with limited welfare benefits.

There will a vast shortage of labour,at competitive rates

That is a new opening for Pakistani labour.On the 1 side,you have Qatar and Saudi - where Oil and Gas,will secure Pakistani jobs - and on the other, the decimation of EU industry - which will lead to a boom in low cost labour.

Also,to offset the Oil and Gas hikes and power costs - what can EU do ? EU people may not want their lands littered with Wind and Solar.

Solution - EU to make massive investments in Pakistani wind corridors - sell to Grid - repatriate the gains - and use that to offset EU power subsidies

Pakistani Wind farms,are set up by conglomerates,who can set off the accelerated depreciation,on the wind project,per se, as the farm is set up,as part of an existing industry,or by merging the brought forward tax assessed losses of the wind farm,or by a tax provision,which allows the depreciation of a Wind-SPV, to be offset with the taxable profits of the holding company.

BUT THIS IS NOT ENOUGH

Pakistan has to bring in foreign capital.In many parts of the US/EU,people do not want Wind,and also,in sub zero temperatures,like in Texas,the Wind energy is a flop.

These investors need wind corridors,in hot and humid zones,in high cost power grids,with no humans or agri or plantations.

Pakistan is the ideal bet for them.

Treat Wind power as a Deemed Export (as you save imported oil and gas)- allow capital goods imports at Nil duty,and a tax holiday for 10 years - with the year of start of the holiday, to be chosen by the farm at any time,in the 1st 5 years.In addition,maximum repatriation of profits and affix the tarriff in USD - as a proxy to imported oil and gas - so that the investors is insulated from PKR-USD.

Based on deemed exports - refund all indirect taxes or allow the wind farm to TRANSFER THE INDIRECT TAX PAID by the wind farm on purchases - to any Pakistani,who can use 85% of the tax as a VAT input credit.

To obviate the need for spinning power to offset wind-solar variations,better to provide incentives to farm,as the wind-solar hybrids,can be used to perpetually pump water - even where the water table in deep.Once the water comes out - THE ENTIRE ECONOMIC CYCLE STARTS.

HOT AND HUMID ZONES - ARE IDEAL FOR WIND GENERATION - 24 HOURS A DAY

Thw issue is NOT that the land of the wind farms,is to be used for SPV farms or CSP or agri - USE THEM FOR ALL THREE ! IF WATER REACHES BALOCHISTAN - IT WILL BECOME A BRAZIL/ARGENTINA (IN TERMS OF AGRI).dindooohindoo

Zen, Munich said...

@Riaz

This ia a very interesting and refreshing article, because it presents a completely overlooked hypothesis.

https://asiatimes.com/2022/04/demographics-push-china-india-russia-triple-entente/

As you love data, there is some data as well, though not particularly optimistic for Pakistan.

Regardless of that article, I am of the opinion that anti Muslim hostility coming from democratic - which in current world order are non Muslim - countries have largely to do with angst of an ageing population.

Muslims from South Asia and Africa have nothing to offer in return - neither skilled workforce, nor surplus capital, which means they become unwanted human capitals (a racist Polish politician called Syrian refugees "human garbage" during migrant crisis). Even though that term is barely used, this is how majority sees unwanted Muslim immigrants from Africa and Afghanistan. Automation of menial jobs means that even a last avenue is slowly becoming inapplicable.

Riaz Haq said...

SBP
@StateBank_Pak
Remittances crossed the monthly mark of US $3 billion for the first time. Cumulatively, at $26.1 billion, remittances grew by 7.6 % in the ten months of FY22 compared to last year.

https://www.sbp.org.pk/ecodata/Homeremit.pdf

https://twitter.com/StateBank_Pak/status/1525003527818469378?s=20&t=mxMP2xDzZxS6JamTtFHE0g

----------------

Arif Habib Limited
@ArifHabibLtd
Monthly remittances reach highest ever during Apr’22, up by 12% YoY

Apr’22: $ 3.13bn, +12% YoY | +11% MoM
10MFY22: $ 26.08bn, +8% YoY

https://twitter.com/ArifHabibLtd/status/1525007593323765760?s=20&t=F8npzRfgFy_5U14SHx-WRw

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KARACHI, Pakistan : Remittances from Pakistani workers employed abroad exceeded a record $3 billion in April, the central bank said on Friday as the country’s foreign reserves dwindled to $16.37 million due to external debt payments.

https://www.channelnewsasia.com/business/pakistans-remittances-hit-all-time-monthly-high-3-billion-april-2683406

“Remittances in April (were) $3.1 billion..., crossing $3 billion for the first time ever,” the State Bank of Pakistan said in a statement.



The surge in remittances have been critical in restraining rises in the current account deficit though it has swelled to $13.1 billion in the first nine months of fiscal year 2022.

In terms of growth, remittances in April increased by 11.2 per cent on a month-on-month basis and 11.9 per cent year-on-year.

Cumulatively, at $26.1 billion, remittances grew by 7.6 per cent during the first 10 months of fiscal year 2022, compared with the 2021 fiscal period, the central bank statement said.

Pakistan is in dire need of external financial support due to a widening current account deficit with foreign reserves down to $10.37 million held by the central bank as of May 6 - equivalent to less than two months of imports.

Another $6.06 million in foreign reserves was held by commercial banks as of last week.



Prime Minister Shahbaz Sharif took over last month after a parliamentary no-confidence vote ousted his predecessor Imran Khan, who was blamed for mishandling the economy.

Sharif's government, however, has yet to implement reform policies such as curtailing costly energy subsidies, which were introduced by Khan's government in his last days in power as he faced mounting pressure over soaring inflation.

Remittances came mainly from Saudi Arabia with $707 million, the United Arab Emirates with $614 million, Britain with $484 million and the United States with $346 million, the central bank said, citing cumulative figures.

Riaz Haq said...

Ali Farid Khwaja
@afkhwaja
·
3h
This is the total dollar inflow in Pakistan over the past 5 years. Look how less important IMF/US/China/Saudi are compared to inflows from overseas Pakistanis. If only we gave them this much importance !

https://twitter.com/afkhwaja/status/1525107929397047297?s=20&t=mxMP2xDzZxS6JamTtFHE0g


FY17-22E

Remittances: $145 billion

Saudi Arabian Support $10 billion


IMF $4.5 billion


China $4.3 billion

US FDI $805 million

Riaz Haq said...

Pakistani Population in Europe
Pakistan has the 6th largest diaspora in the world, with 8-10 million people living or settled outside Pakistan. As per the Ministry of Overseas Pakistanis and HRD report 2017, an estimated 8.8 million Pakistanis live abroad or outside Pakistan.

According to the Ministry of Overseas Pakistanis and Human Resource Development, approximately 2 million Pakistanis live in Europe according to December 2017 estimates, with the vast majority, over 1.5 million, residing in the United Kingdom. Italy, Germany, Spain, and France are other countries in Europe with sizeable Pakistani populations.

As per the estimates, the Pakistani Population in European Union in 2022 is 0.5 million.

Source: Ministry of Overseas Pakistanis and HRD report 2017


https://www.findeasy.in/pakistani-population-in-european-union/

# EU Country Overseas Pakistani population
1 Germany 124,000
2 Italy 122,884
3 France 104,000
4 Spain 91,632
5 Norway 39,257
6 Greece 34,177
7 Denmark 25,661
8 Sweden 24,631
9 Netherlands 23,855
10 Belgium 19,247

Riaz Haq said...

Pakistanis in EU

https://www.findeasy.in/pakistani-population-in-european-union/

Pakistanis in Germany
Pakistani Diaspora in Germany also referred to as Pakistani Germans are estimated at 124,000 (1.25 lakh). The number is based on the Dec. 2017 report on Overseas Pakistani by the Ministry of Overseas Pakistanis and Human Resource Development.

Almost a third of all Pakistanis in Germany live in Hesse. There are approximately 1900 Pakistanis living in the northern city-state of Hamburg, about 1500 in Frankfurt am Main and almost 1400 in Berlin and its suburbs. Many young Pakistanis have come to Germany recently as students of science and technology in prestigious universities.

Pakistanis in Italy
Pakistani Diaspora in Italy is estimated at 122,884 (1.25 lakh). The number is based on the Dec. 2017 report on Overseas Pakistani by the Ministry of Overseas Pakistanis and Human Resource Development.

Most of the workers are of Punjabi background and account for 72 percent share of migrants in 2016 and 76 percent in 2017. According to the Italian ambassador to Pakistan, Andreas Ferrarese, as of February 2021, there are around 200,000 Pakistanis in Italy, of the 140,000 are documented.

Pakistanis in France
Pakistani Diaspora in France is estimated at 104,000 (1.04 lakh). The number is based on the Dec. 2017 report on Overseas Pakistani by the Ministry of Overseas Pakistanis and Human Resource Development.

There is a population of Pakistanis in France, primarily of Punjabi origin from Punjab and Azad Kashmir. Large-scale Pakistani migration to France began in the 1970s; they clustered around the Rue du Faubourg-Saint-Denis in the 10th arrondissement of Paris, where many set up grocery stores and restaurants.



According to the latest official statistics published by the French government, there were 24,305 Pakistani-born people living in the country in the year 2015, also there were 19,646 Pakistani nationals living in France in 2015

Pakistanis in Spain
Pakistani Diaspora in Spain is estimated at 34,177. The number is based on the Dec. 2017 report on Overseas Pakistani by the Ministry of Overseas Pakistanis and Human Resource Development.

Spain has a population of approximately 46.5 million, of which 9.5% are foreigners. Pakistanis are 1.2% of all foreigners and barely 0.1% of the population in Spain and more than half of all Pakistanis in Spain are in Barcelona.

Pakistanis in Norway
Pakistani Diaspora in Norway is estimated at 39,257. The number is based on the Dec. 2017 report on Overseas Pakistani by the Ministry of Overseas Pakistanis and Human Resource Development.

Around half of the Pakistani population in Norway are Punjabis and 65.23% of Pakistanis in Norway live in the capital Oslo. The earliest Pakistani migrants came to Norway in the 1960s and 1970s as migrant workers, a large portion from Punjab.



Pakistanis in Greece
Pakistani Diaspora in Greece is estimated at 39,257. The number is based on the Dec. 2017 report on Overseas Pakistani by the Ministry of Overseas Pakistanis and Human Resource Development.

According to official figures, some 700,000 legal immigrants make up 6.5 percent of Greece’s population. The size of the Pakistani community, one of the largest, is estimated to be about 80,000-strong; only 30,000 of them are in Greece legally.



Pakistanis in Denmark
Pakistani Diaspora in Denmark is estimated at 25,661. The number is based on the Dec. 2017 report on Overseas Pakistani by the Ministry of Overseas Pakistanis and Human Resource Development.

The earliest Pakistani migrants came to Denmark in the 1960s and 1970s as migrant workers, a large portion from Punjab. Danish Pakistanis form the country’s fifth-largest community of migrants and descendants from a non-Western country, with 14,379 migrants and 11,282 locally born people of Pakistani descent as of 1 January 2019 according to the latest figures published by the government of Denmark.

Riaz Haq said...

Highest ever oil import bill for the month of April 2022 amid 72% YoY jump in Arab Light prices along with 28% YoY volumetric growth.

Apr’22: $ 2.2bn, +94% YoY, +19% MoM
10MFY22: $ 17.0bn, +96% YoY

https://twitter.com/arifhabibltd/status/1525883734138003457?s=21&t=mKZ4thMugbEOJifLndhg1A

Workers’ remittances up 7.7pc to $26.1bn in 10 months

https://profit.pakistantoday.com.pk/2022/05/13/workers-remittances-up-7-7-to-26-1bn-in-10-months/

Exports grow by 25.46pc to $26.228 billion in 10 months


https://www.app.com.pk/business/exports-grow-by-25-46pc-to-26-228-billion-in-10-months/
------------


Arif Habib Limited
@ArifHabibLtd
Trade deficit increased by 65% to USD 39.3bn during 10MFY22

Textile Exports: $ 16.0bn, +26% YoY
Petroleum Imports: $ 17.0bn, +96% YoY
Agriculture and others: $ 12.1bn, +67% YoY
Transport Imports: $ 3.7bn, +60% YoY

https://twitter.com/ArifHabibLtd/status/1525873729749798913?s=20&t=Ssqo_-kw9_792ptmvNU1kw

Riaz Haq said...

SBP
@StateBank_Pak
Current Account Deficit shrunk to $623mn, in Apr 22; only two-thirds of Mar22 deficit of $1015mn. A rise in workers’ remittances (by $315mn) & a fall in imports (by $246mn) explain this reduction. Cumulatively, CAD reached $13,779mn during Jul-Apr FY22.

https://www.sbp.org.pk/ecodata/Balancepayment_BPM6.pdf

https://twitter.com/StateBank_Pak/status/1527350717580660743?s=20&t=LvT-wTgMp-e2I1iGiymefw

Riaz Haq said...

Arif Habib Limited
@ArifHabibLtd
Current Account Balance Apr’22

CAB: $-623mn (+132% YoY, -39% MoM)
Remittances: $3.1bn (+12% YoY, +11% MoM)
Total imports: $7.0bn (+25% YoY, -3% MoM)
Total exports: $3.8bn (+35% YoY, +1% MoM)

https://twitter.com/ArifHabibLtd/status/1527489074482782210?s=20&t=s_gLGc2WG0a97z5XlHNR7A

Riaz Haq said...

Remittances to Reach $630 billion in 2022 with Record Flows into Ukraine

https://www.worldbank.org/en/news/press-release/2022/05/11/remittances-to-reach-630-billion-in-2022-with-record-flows-into-ukraine

https://www.knomad.org/publication/migration-and-development-brief-36

Remittances to South Asia grew 6.9 percent to $157 billion in 2021. Though large numbers of South Asian migrants returned to home countries as the pandemic broke out in early 2020, the availability of vaccines and opening of Gulf Cooperation Council economies enabled a gradual return to host countries in 2021, supporting larger remittance flows. Better economic performance in the United States was also a major contributor to the growth in 2021. Remittance flows to India and Pakistan grew by 8 percent and 20 percent, respectively. In 2022, growth in remittance inflows is expected to slow to 4.4 percent. Remittances are the dominant source of foreign exchange for the region, with receipts more than three times the level of FDI in 2021. South Asia has the lowest average remittance cost of any world region at 4.3 percent, though this is still higher than the SDG target of 3 percent.

Riaz Haq said...

Fiscal deficit recorded at 3.8pc in 3 quarters

https://profit.pakistantoday.com.pk/2022/05/30/fiscal-deficit-recorded-at-3-8pc-in-3-quarters/


The country’s fiscal deficit was recorded at 3.8 per cent of the Gross Domestic Product (GDP) during the first three quarters of the current fiscal year compared to the 3 percent deficit recorded during the corresponding period of last year.

The deficit during July-March (2021-22) stood at Rs2,565.6 billion compared to the deficit of Rs1,652.0 billion during July-March (2020-21), says Monthly Economic Update and Outlook, May 2022 released by finance ministry.

The increase in deficit has been observed on account of the higher expenditures due to the rise in subsidies and grants. It is expected that the expenditure side would come under further pressure in the remaining months of the current fiscal year.

Similarly, the primary balance posted a deficit of Rs447.2 billion against the surplus of
Rs451.8 billion during the period under review.

Meanwhile, on the revenue side, tax collection has been currently showing a remarkable performance by posting a growth of 29 percent during the first ten months of the current fiscal year.

The first ten months’ data shows that the revenue collection has surpassed the target by Rs237 billion. This is despite tax relief measures which have impacted revenue collection by approximately Rs73 billion just in the month of April 2022. Total revenues grew by 17.7 percent in July-March (FY-2022) against the growth of 6.5 percent recorded in the same period of last year.

Higher growth in revenues has been achieved on the back of the significant rise in tax collection, the outlooks says adding, total tax collection (federal & provincial) increased by 28.1 percent whereas non-tax collection declined by 14.3 percent during the period under review.

FBR has taken various policy and administrative measures which paid off in terms of improved tax collection during the current fiscal year. It is expected that with the current growth momentum, FBR would be able to achieve its target during FY 2022. Total expenditure witnessed a sharp rise of 27.0 percent during Jul-Marc FY2022 against a 4.2 percent rise in the same period of last year.

Higher growth in total expenditure during the period has been observed on account of 21.2 percent growth in current spending and 54.6 percent increase in development expenditures.

The government is taking all possible measure to counter the downside risks associated with the economy, which currently has been facing challenges to sustain growth it had achieved during the fiscal year 2021-22, says Monthly Economic Update and Outlook,
May 2022 released here.

“Although the economy of Pakistan has achieved GDP growth of 5.97 percent in FY2022, but the fiscal situation and external sector performance are making it difficult to sustain and impacting the growth outlook in coming year,” noted the report.

It says, the International commodity prices were on rising trend and expected to increase further, adding the pass-through of the increase in global commodity prices was somewhat contained due to government measures. Even then it is expected that Consumer Price Index (CPI) inflation will remain in double digit in May 2022.

Riaz Haq said...

Pakistan has received all-time high remittances from overseas Pakistanis residing in European countries in the first 10 months of the fiscal year 2021-22.

https://arynews.tv/pakistan-receives-record-remittances-from-european-countries/

According to details, overseas Pakistanis residing in the EU countries sent over $2.8 billion in remittances in the first 10 months (July-April) of the fiscal year 2021-22. The amount received in these 10 months is 27.1% higher than the amount received at the same time last year. the remittances received by Paksitan at the same time last year were $2.20 billion.

The highest number of overseas Pakistanis in Europe are in Italy and that shows in the number of remittances as well. Overseas Pakistanis in Italy sent $701 million in remittances from July 2021 to April 2022. The amount is 47% higher than the amount sent by Italian Pakistanis last year which was $295.5 million.

According to details, the second-highest remittances, $300 million, were sent from Greece. There was a 41 per cent hike in the remittances sent from Greece in comparison to the last fiscal year. Remittances received from Greece last year amounted to $215 million.

The third highest remittances among European countries were sent from Holland, with an amount of $50.2 million received from July 2021 to April 2022, which is 30% higher than the last year.

While the fourth-highest remittances among EU countries were sent from Spain, with an amount of $42 million which is 30.1% higher than last year.

Riaz Haq said...

World Population Day: India will overtake China in 2023, says the UN
By Stephanie Hegarty

https://www.bbc.com/news/science-environment-62126413


India is set to become the world's most populous country next year, overtaking China with its 1.4bn people, according to UN figures.

By this November, the planet will be home to 8bn.

But population growth is not as rapid as it used to be.

It is now at its slowest rate since 1950 and is set to peak, says the UN, around the 2080s at about 10.4bn though some demographers believe that could happen even sooner.

But the population of the world is expanding unevenly.

More than half the growth we will see in the next 30 years will happen in just eight countries - the Democratic Republic of the Congo, Egypt, Ethiopia, India, Nigeria, Pakistan, the Philippines and Tanzania.

At the same time, some of the world's most developed economies are already seeing population decline as fertility rates fall below 2.1 children per woman, which is known as the "replacement rate". In 61 countries, the report says, populations will decline by at least 1% by 2050.

With one of the lowest fertility rates in the world (at 1.15 children per woman), China has announced that its population is due to start declining next year - much earlier than previously thought. That is despite the country abandoning its one child policy in 2016 and introducing incentives for couples to have two or more children.

As India's population continues to grow it will almost certainly overtake China as the country with the biggest population in the world.

Fertility rates are falling globally - even in many of the countries where the population is expanding. That is because, as previous generations expand, there are more people having children, even if individually those people are having fewer children than their parents did.

Growth is also largely thanks to developments in medicine and science which mean that more children are surviving into adulthood and more adults into old age. That pattern is likely to continue, which means that by 2050 the global average life expectancy will be around 77.2 years.

But this pattern means that the share of the global population aged 65 years or above is projected to rise from 10% this year to 16% in 2050. Again the distribution will be unequal with some countries, in East Asia and Western Europe, already seeing more extremes in ageing.

Riaz Haq said...

#India population to surpass #China's in 2023. Over half of global population increase up to 2050 will be in just 8 countries: Dem Republic of #Congo, #Egypt, #Ethiopia, #India, #Nigeria, #Pakistan, #Philippines & #Tanzania. https://www.un.org/development/desa/pd/sites/www.un.org.development.desa.pd/files/wpp2022_summary_of_results.pdf

For 10 countries, the estimated net outflow of migrants exceeded 1 million over the period from
2010 through 2021. In many of these countries, the outflows were due to temporary labour
movements, such as for Pakistan (net flow of -16.5 million), India (-3.5 million), Bangladesh
(-2.9 million), Nepal (-1.6 million) and Sri Lanka (-1.0 million). In other countries, including
Syrian Arab Republic (-4.6 million), Venezuela (Bolivarian Republic of) (-4.8 million) and
Myanmar (-1.0 million), insecurity and conflict drove the outflow of migrants over this period.
• All countries, whether experiencing net inflows or outflows of migrants, should take steps to
facilitate orderly, safe, regular and responsible migration, in accordance with SDG target 10.7.

------------------

Between 2010 and 2021, 40 countries or areas have experienced a net inflow of more than
200,000 migrants; in 17 of those, the total net inflow exceeded 1 million people.
In 2020, Türkiye hosted the largest number of refugees and asylum seekers worldwide (nearly 4 million),
followed by Jordan (3 million), the State of Palestine (2 million) and Colombia (1.8 million). Other major
destination countries of refugees, asylum seekers or other persons displaced abroad were Germany,
Lebanon, Pakistan, Sudan, Uganda and the United States of America (United Nations, 2020b).

Anonymous said...

What is future of Europe remittances if cut off of Russia gas causes major recession in Europe?

Riaz Haq said...

Pakistan’s earnings from Italy in exports and remittances crossed $2 billion in Financial Year 2021-2022. In addition a substantial growth in FDI from Italy was also witnessed during the record breaking year.

https://profit.pakistantoday.com.pk/2022/07/20/earnings-from-italy-in-exports-remittances-cross-2bn/

Italy became the seventh billion dollar export country for Pakistan during the year with a record growth of export volume to $1,146 million, while the remittances from Italy were also on the path to touch billion dollars soon with a total of $857 million during the year.
June 2022 also set the record for highest export volume ever to Italy in a single month crossing $144 million.
Italy posted the highest growth both in workers remittances among all countries with high numbers of Pakistani diaspora and for exports among the top ten export destinations.
This phenomenal growth in exports and remittances has come at a time when European economies in general and Italian economy in particular is slowing down and facing multiple challenges due to Ukraine war.
The exports to Italy of $1.15 billion in FY 2021-22 are 46% higher than the previous year, while the remittances are 41% higher for the same period than the last year.
While talking to media, Pakistan`s Ambassador to Italy, Jauhar Saleem paid glowing tributes to the Pakistani exporters for their initiative and hard work and to the Pakistani diaspora in Italy for standing by the country in a most challenging economic environment. He also shared that Pakistan had posted a record trade surplus of $573 million during the financial year 2021-22 which is 91% higher than the previous year.
According to the envoy, the value added sectors were the main drivers of the exceptional export growth with exports of plastic products increasing by 208%, sports goods 80%, leather 42%, home textiles 36% and garments 35%. The ambassador also shared that even as the pandemic hit global footwear market witnessed a contraction of shrank demand during the year, Pakistan’s exports of footwear to Italy increased by 19% in the year and Italy has become the 3rd largest export destination for Pakistani footwear. Italy is also the 5th largest destination for Pakistani home textiles and ranks No.6 in garments exports.
Ambassador Saleem also informed that that with the revival of market activities after removal of pandemic related restrictions in Italy, the Pakistan Embassy in Italy was further pacing up its activities to connect Pakistani businesses with Italian firms to sustain the exports and FDI growth. During the just concluded financial year, Pakistan received Italian investment in the sectors of food processing, chemicals, construction, leather, footwear, energy related equipment and IT.
The Ambassador also shared that some of the recent joint ventures between leading Pakistani and Italian footwear firms were enabling technology transfer, international marketing skills and supply chain management to Pakistani firms. Moreover, Italy was also providing technical support in agriculture sector especially related to olive and olive products. Similarly, Italy is supporting the efforts for reduction of risks of Glacial Lake Outburst Floods (GLOF) and hydrogeological hazards in mountainous areas by establishing an evidence-based assessment and monitoring system for glaciers in Gilgit Baltistan.
Ambassador Jauhar Saleem also informed the media that Italy has announced to allow 69,700 seasonal workers from selected countries in 2022 to come to Italy for work. Pakistan has already been included in the Italian Seasonal Work Visa Programme for 2022, which would offer many opportunities to our workers in agriculture and services sector to work in Italy. He added that Italian government has recently reduced the timelines for work visa processing which has been a long standing demand from Pakistani workers.

Riaz Haq said...

Remittances Are a Lifeline for Developing Countries With Economic Instability

https://thefintechtimes.com/remittances-are-a-lifeline-for-developing-countries-with-economic-instability/

Remittances sent worldwide have increased 64.3 per cent in the past decade, rising from $420.1billion 10 years’ ago to $653.4billion in the last year, shows research by ACE Money Transfer, the online remittance provider.
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Global economic growth is expected to slump from 6.1 per cent last year to 3.2 per cent this year — significantly lower than the 4.1 per cent anticipated in January. This is due to rising interest rates and spiralling inflation. This slowdown in growth is expected to hit low-income countries harder.

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Remittances also play a key role in urban areas, helping drive investment into real estate and infrastructure in developing countries.

Rashid Ashraf, CEO of ACE Money Transfer, says, “Remittances have a massive impact on people’s lives across the world. When times are tough and economies are struggling, this is when remittances are particularly important.

“Around three-quarters of remittances sent globally are used to cover essential things, like putting food on the family’s table and covering medical expenses, school fees or housing expenses. In addition, in times of crises, migrant workers tend to send more money home to cover loss of crops or family emergencies.”

Countries facing significant economic stress at present include Sri Lanka, Pakistan, Nigeria and Nepal. Remittances play a key role in supporting the economies of all mentioned countries.

Remittances key to helping Sri Lanka and Nepal’s struggling economies
Sri Lanka in particular has struggled following the pandemic, with its economy having collapsed. The country has been short of cash to pay for vital food and fuel imports and has defaulted on its debt.

Remittances are a key pillar of Sri Lanka’s economy, reaching $7.1billion in the past year, up from $6.7billion the previous year. Remittances in Sri Lanka support economic growth, reduce the burden on social security payments and help alleviate poverty. Increases in remittances could significantly aid Sri Lanka’s economic recovery.

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How remittances can help moderate inflation in Pakistan and Nigeria
Pakistan and Nigeria are two other countries facing economic difficulties where remittances can play a key role in their recoveries. Both countries have been struggling with the effects of surging inflation this year.

Pakistan’s currency has devalued 28 per cent compared to the US dollar so far this year, fuelling surges in the prices of vital imported goods such as fuel, cooking oil and grains.

This has made remittances to Pakistan, which have risen 26 per cent to a record $33billion in the past year, even more important. Remittances are a key source of foreign currency for Pakistan and play a significant role in supporting its currency. This is in turn can help control inflation and the price of essential goods and services in the country.

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The role of remittances in strengthening resilient economies like the Philippines
Remittances can also play an important role in countries where the economy has remained resilient. This includes the Philippines’ economy, which has continued to show rapid expansion this year despite global headwinds.

An important stabilising factor in its economy has been remittances, which have reached a record high of $34.9billion in the past year. Remittances in the Philippines are important in supporting domestic consumer spending, which has driven the country’s economic growth.

Remittances are a crucial source of foreign capital for many developing countries. Unlike other flows of private capital, remittances have remained resilient throughout the pandemic. As economics across the world continue to recover, remittances continue to play a vital role in helping countries build resilience and drive economic growth.

Riaz Haq said...

Germany is hoping to combat its shortage of skilled workers with a new ‘opportunity card’.

https://www.euronews.com/travel/2022/09/06/skilled-workers-are-in-demand-as-germany-tackles-labour-shortage-with-new-points-based-vis

The ‘chancenkarte’ will use a points system to enable workers with required skills to come to Germany more easily.

It is part of a strategy proposed by Labour Minister Hubertus Heil to address the country’s labour shortages, which is due to be presented to the government this autumn.


Every year, quotas will be set depending on which industries need workers. Three out of four of the following criteria must also be met to apply for the scheme:

A degree or vocational training recognised by Germany
Three years’ professional experience
Language skills or a previous stay in Germany
Under 35 years old
Currently, most non-EU citizens need to have a job offer before they can relocate to Germany. A visa for job seekers already exists, but the 'chancenkarte' is expected to make it easier and faster for people looking to find work in Germany.

Citizens of certain countries with visa agreements can already enter Germany for 90 days visa-free but are only permitted to take up short-term employment.

The opportunity card will allow people to come and look for a job or apprenticeship while in the country rather than applying from abroad. Applicants must be able to prove they can afford to pay their living expenses in the mean time.

The exact details of the scheme are yet to be formalised.

Why does Germany need to attract skilled workers?
This year, the shortage of skilled workers in Germany has risen to an all time high. Earlier this year, the Institute for Employment Research (IAB) found 1.74 million vacant positions throughout the country.

In July, staff shortages affected almost half of all companies surveyed by Munich-based research institute IFO, forcing them to slow down their operations.