Remittance flow into Pakistan increased by about 17 per cent in 2020, defying the gloomy projections and in spite of the global Covid-19 pandemic.
The growth in the home remittances from Pakistanis working abroad last year was much faster than 5.2pc increase in flows to the South Asian countries, according to the latest Migration and Development Brief published by the World Bank.
Previously, the bank had forecast significant decline in remittances to Pakistan and the rest of the countries in the region because of the coronavirus pandemic that forced nations across the world to lock down their economies and send migrant workers back home to their countries of origin.
The biggest growth in remittances flow into Pakistan came primarily from Saudi Arabia followed by the European Union (EU) countries and the United Arab Emirates.
The decline in recorded global remittance flows last year was smaller than the one – 4.8pc – during the 2009 global financial crisis. It was also far lower than the fall in foreign direct investment (FDI) flows to low- and middle-income countries, which, excluding flow to China, fell by over 30pc in 2020. As a result, remittance flows to low- and middle-income countries surpassed FDI of $25bn and overseas development assistance of $179bn.