Worker Remittance lead Positively toward economic growth of Pakistan || Yasir Hassan Blogs

Introduction

Before discussing about Pakistani workers remittance lead positively toward economic growth of Pakistan lets understand what is remittance what is mean by remittance. Remittances are the amount of money which is sent by the Pakistani workers who are working in different countries and send money to Pakistan to the families Now As per the Ministry of Overseas Pakistanis and Human Resource Development, around 8.8 million Pakistanis live abroad over 4.7 million, dwelling in the Middle East. The second biggest local area, at around 1.2 million, live in the United Kingdom. As per the UN Department of Economic and Social Affairs, Pakistan has the sixth biggest diaspora on the planet. Now here we have to understand there are two type of Peoples who send money to Pakistan one are employees and other are business mans the employees send money dollars to their Families and the businessman’s send money for start up of their business in Pakistan. Which is called (FDI) and it is defined as an unfamiliar direct investment(FDI) is an interest as a controlling proprietorship in a business in one country by a substance situated in another country. It is subsequently recognized from an unfamiliar portfolio speculation by an idea of direct control. So if we discuss about the numbers of remittances for last year around 33 billion dollar sent to Pakistan and during fiscal year 2020-2021 the remittances are growing up to 26.5% and the FDI is rising up to 9.1 % so it is a positive sign for economic growth of Pakistan. If we compare the FDI of Pakistan from last 20 year According to world bank data in 1970 FDI was 0.229 % and in 2019 it is 0.803% and the record FDI is in 2007 it is 3.668 % the last data is available till 2019 in world bank data. But now we have record remittances and FDI. As compare to last 20 years.

Data Collection and Methodology

For data collection I will use Primary data collection method by taking interviews form some Government officials and oversees Pakistani workers And I will also use secondary data collection method if any were I needed.

Interview Questions

· What are the challenges and benefits of working abroad?

· What are the ways of sending money to Pakistan?

· What is the behavior and attitude of Pakistani banks toward oversees workers?

· Which way of sending money to Pakistan is easy for the oversees workers Hundi, Havala or banks?

Answers of oversee Pakistani

"He said there are many challenges to work in abroad and it is very hard to work in another county environment, another culture, far from our home family and minimum 3 to 4 years we can’t see our family members so these are the challenges we oversees face in other countries. The benefits of working in abroad is that as you know in Pakistan there is no jobs, and opportunities to earn more money to live a standard life so we are unwilling coming to other countries though different linkages and we get work here get will paid so we can send money to our family and use it for our self. we see different places meet with different peoples work with them and work for them so it is a good experience.

At starting to save our money from tax we were sending money though Hundi,Hawala system but in that way mostly we were getting losses because it was not a proper channel of sending money we have no proof of sent money so now mostly Pakistani working here in Saudi Arab we send money though banks which is safe.

The behavior of the Pakistani banks are good they are cooperating with us and we are satisfy with their work

Banking system is more safe so now most of us are sending money though bank channels and in other side sending money though hundi, havala system you have no proof. If the money lost it lost you can’t clam to any one"

1st Interview

Questions

· How can Pakistani government increases remittances?

· What steps should government take to increases remittances?

Answers

"In my point of view there are two ways by which government of Pakistan will be able to increases remittances one way is try to facilitate more and more the oversees Pakistani worker make our banking system more effective start campaigns to motivate the oversees workers to send money though banks

2nd way is to take serious actions against the hawala, and hundi system which are present in Pakistan because still allot of oversees Pakistani are sending money though hawala and hundi system which is affecting our economy alote

As far as the steps are concern Imran khan government is taking may good steps to facilitate the oversees Pakistani for examples Roshan digital account, soni darti scheme’s, and many more. And due to which the oversees workers are sending a huge amount of money to Pakistan which help our economy. And now remittances are backbone of our economy. And I believe the Imran khan government will make more good decisions. The overseas are also very satisfied with Imran khan decisions and they respect as Imran khan is doing efforts for oversees now the electronic voting machine (EVM) is also a good step to allow the overseas to take part in elections"

2nd interview

Questions

· How foreign Pakistani workers remittances lead positive toward economy of Pakistan?

· How can Pakistani government increases amount of remittances?

Answers

"Yes foreign Pakistani workers remittances are very important for Pakistan it may be not wrong if I say our economy is dependent on remittances during covid -19 remittance help Pakistan economy to stay alive.so how it lead positive toward economy of Pakistan is that remittances are the money which is sent by the overseas Pakistani workers in dollar to Pakistan when a country imports are more than its exports then that country have three choices one is to take some decisions to increases exports 2nd take loans from other countries 3rd take decisions to facilitate the overseas workers to send remittance .

From past some year overseas Pakistanis are sending record remittances to Pakistan almost 33 billion in one year there are two reasons 1st is the due to covid- 19 the international flights were stopped so the Pakistanis who were sending money though their relatives or friend by hand they cant able to send the money and there was one way to send money to their home that was though banks. 2nd the Pakistani Government is more focus on remittance and they are making the bank channels easy for the overseas to send money though banks.

Covid 19 played an important role for remittance. Because due to covid 19 all international flights were closed so every overseas Pakistani sent money though banks but after covid-19 now the international restrictions are ended so there may be chances of decrease in amount of remittances so Pakistani government have to regulate the indirect inflow of money"

3rd interview

Questions

· Why Pakistan got record remittances from last year. Is it due to new policies of PTI Government or any other reasons ?

Answer

"In My opinion there are some reasons for record remittances from last year. 1st Reason is that if we talk about middle east due to covid-19 and restrictions on tourist visa so the peoples who were sending money by hand though friends and relatives they got issues so they left with one way of sending money which is through banks If we discuss about Europe and north America there government is taking action against anti-money laundering so that the workers feel safe to send money though banks. If we see the FATF 27 points its 3rd and 4th point is that government should regulate the Hawala and hyundi system and the peoples transfer money though indirect way government must take action against those peoples bring them under law. So government is also taking many actions. So these may be some of the reasons that we got record remittances and I hope in future the number of remittances and FDI will Increases in a positive direction"

ANAYSIS

By taking interview from both overseas workers as well as Government official I notice that the remittances play a big role in our economy as well as it play a big role in all developing country. So from last fiscal year Pakistan got record remittances almost 33 billion and during the first quarter of 2020-2021 the remittances grow up to 26.5% and foreign direct investment rise up to 9.1 % which is a very positive sign to the economy of Pakistan so after taking interviews I get to know that covid-19 also played a big role in increasing the remittances and the biggest problem is the indirect flow of money though different links like Hawala system Hundi system in past it affected our economy. Because these money do not travel though proper banking channels.

Suggestions

· To increases remittances Pakistan Government have to take serious and strict action against the Havala and Hundi system groups which are present in Pakistan

· Pakistan Government make the Banking system more effective and easy so that the workers who are working abroad can send money easily on time

· Start a campaign and motive and inform the overseas Pakistani workers about the benefits of sending money though banks channels

· Government should have to give incentives to the oversees Pakistani workers who are sending one though proper bank channels

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