Overseas Pakistanis Rescuing Pakistan Economy Yet again
By Riaz Haq
Pakistani diaspora sent home $14.2 billion in remittances during July-December 2020, up 25% from the same period in 2019. Pakistanis settled in the United States and the United Kingdom increased their remittances by 52% and 47% respectively in this period, helping Pakistan achieve a record $1.8 billion current account surplus in the first 6 months of the ongoing fiscal year 2020-21.
While Pakistan's exports increased a modest 5.1%, the remittances from overseas Pakistanis jumped a hefty 25% in response to an appeal by Prime Minister Imran Khan who remains very popular among them. He drew nearly 30,000 Pakistani-Americans to a rally during his Washington DC visit in 2019.
Pakistan's imports increased 5.5%, more than the 5.1% increase in exports, during the first half of the current fiscal year 2020-21. This resulted in $12.4 billion trade deficit, a 5.9% increase. Without the 25% jump in remittances, Pakistan would most likely have a current account deficit rather than a surplus in this period.
The modest 5.1% increase in Pakistan's exports is still commendable in view of the global economic devastation caused by COVID19 pandemic. What is even more commendable is the 19% jump in exports in December 2020 over the same month in 2019, indicating a strong upward trend.
Pakistani diaspora is the world's fifth largest with more than half a million Pakistanis migrating every year to work overseas. Over 11 million Pakistanis have left home for employment in Europe, America, Middle East and elsewhere since 1971, according to Pakistan Bureau of Emigration. The pace has particularly picked up over the last 10 years. This phenomenon has helped reduce unemployment in a country where about 2 million young people are entering the job market every year. It has also helped remittances soar nearly 28X since the year 2000.
-----------------------------------------------------------------------------
Back to Pakistanlink Homepage
