ISLAMABAD: Many economic experts in the country attribute the increased flow of remittances from overseas Pakistanis in the month of July to the election victory of Pakistan Tehreek-e-Insaf chief Imran Khan and upcoming Eid-ul Azha while for some it is the impact of amnesty scheme, summer vacation or some other factors.
According to an official source, the overseas Pakistanis sent 21 per cent more remittances to their homeland during the month of July, especially in its last week.
The inflow of workers’ remittances amounted to $1,929.76 million in the first month of Fiscal Year 2019 as compared to $1541.67 million received during the same period in the preceding year.
In July 2018, the inflow of workers remittances amounted to $1929.76 million, which is 21.03 per cent more than June 2018 and 25.17 more than July 2017.
Talking to news agencies, Pakistan Economy Watch President Dr Murtaza Mughal said overseas Pakistanis are well-wishers of their country and rendering great contributions to the national economy through sending remittances. “They always keep ready to bail out the country in difficult times”.
Dr Murtaza said the major reason for increased remittances in the month of July was obviously the victory of Imran Khan. “Overseas Pakistanis have shown trust over his leadership for the only reason that he is a financially clean person”.
Either it is the hospital, university or cricket, Imran Khan is popular for his honesty among people and they trust him so overseas Pakistanis are also showing trust over him with an expectation that the new government will introduce good policies for them, he said.
Dr Murtaza further added that he sees very a better financial future of the country if Imran Khan decides to motivate overseas Pakistanis financially in his tenure and introduce positive policies for them and explore more labour markets in different countries.
Another reason for increased remittances is the ritual of sacrifice for which overseas Pakistanis have sent more remittances to the country. “Eid-ul-Adha is the biggest festival of the country and majority of the Muslims even belonging to the middle-class families make their effort to participate in the ritual of sacrifice,” he observed. Pakistan is the country popular for giving charity and overseas Pakistanis contribute to this cause, which positively affects the remittances, he observed.
President Islamabad Chamber of Commerce and Industry (ICCI), Amir Waheed was of the view that Amnesty Scheme was the only reason of increased remittances during the last month. To my perception, the new government after formation will devise its policies for Overseas Pakistanis’ welfare and then it will influence remittances as well as build their trust to invest more money within the country.
Research Fellow, Sustainable Development Policy Institute, (SDPI), Dr Sajid Ameen said the reason for the increased remittances could be returning migrants from the countries like Saudi Arabia and obviously the economic indicators in the home country including inflation.
Former Chairman Board of Governors, Overseas Pakistanis Foundation (OPF), Barrister Amjad Malik said summer vacation is another reason for increased remittances.
Workers abroad send more remittances to their homes for investment purposes while different schemes within the country and the rate of the dollar also impact the inflow.