State Bank of Pakistan has estimated to receive workers’ remittances over $13 billion in the current fiscal year 2011-12.
Deputy Governor Operations State Bank of Pakistan Mr. Muhammad Kamran Shahzad in a seminar on the “Role of Construction and Allied Industries in the Economic Development of Pakistan” told that in the year 2000 the foreign remittances were $1billion whereas in the first half July-December 2011 of the current fiscal year these have reached to the level of $6.3 billion. This indicates an impressive growth of 19.54% over the same corresponding period last year when the remittances were at the level of $5.2 billion.
Despite of being undermined by another global recession, foreign remittances have increased considerably in the recent months, the main reason behind this growth is the more use of banking channels as compared to informal channels. In order to attract greater remittances through the banking channel; the parallel forex market should be watched closely.
Another most important but uncertain issue is the fate of overseas Pakistanis working abroad which might suffer if hit by another global recession. Due growing concern about job losses as developed countries suffer and specific vulnerability of global banks and financial institutions, it is expected that these expatriates may return. There is a fair chance that this short term boost might decline in future.