History of Remittances to Pakistan (1973—Present)

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147967156634005.png
Pakistan's remittances.
(World Bank)

Importance:— Remittances sent to Pakistan are increasingly playing a prominent role in the development of its economy, who's GINI coefficient has hovered around the 0.34-0.39 mark for several decades since the 1971 Pakistani Civil War.[1] According to the Asian Development Bank, in 1973, a total of $136 million in remittances was sent to the country[2] (with the low figure largely explained by unskilled emigration to countries such as the UK). Slightly less than a decade later this had increased to $2,116 million[2] (with skilled professionals now playing a more prominant role). In 1991 this fell to $1,848 million,[2] but by 2002 this had recovered to around $2,389 million.[2] In 2012 the figure almost sextupled to $13,920 million, and in 2013 this had increased to $14,900 million.[3] Middle-income countries received $410,000 million in remittances in 2013; a growth of 36% since 2000.[4] India sent $71,000 million,[3] with a diaspora of of 25 million based on figures from 2013,[5] and China $60,000 million[3], with the diaspora amounting to 50 million (however, the global Chinese diaspora is very difficult to quantify, however estimates range from 45 million (2013) to 50 million (2016), excluding those of partial Chinese descent).[6][7] According to the BBC, the Pakistani diaspora amounted to 4.2 million people in 2004.[8] However other sources claim that there are between 4 million in 2009 to 7 million in 2010 (with one source claiming that it may be as high as 10 million based on 2011 figures).[9][10][11][12] In 2016, for the first time, remittances surpassed $20 billion dollars; (out of $441 billion dollars worth of remittances generated worldwide),[13][n. 1] from a diaspora of 10 million (2015).[14][n. 2]

History:— In 1973, the UK accounted for 54% ($73 million) of total remittances sent to Pakistan, which however decreased to 7% ($459 million) by 2008.[2] This was as a result of increased migration to Saudi Arabia and the UAE, which gradually contributed to an increasing share of total remittances obtained.[1] In 1981 Saudi Arabia accounted for as much as 47% ($984 million) of the total and the UAE amounted to 13% ($265 million). By 2008, each of these respective countries contributed to a 19% share ($1,251 million) and 17% ($1,090 million).[2] Pakistani-Americans have also contributed to a greater share of these remittances, increasing from 7% ($10 million) in 1973 to around 27% ($1,762 million) by 2008.[2] Generally, remittances have been increasing year on year since the 1990s. The ADB cites a study that suggests a 10% increase in income leads to a 3.6% increase in remittances per person.[2] Education also seems to be a prime factor in increasing remittances; 53-55% (2009) of Pakistani-Americans for example hold at least a bachelors level degree, compared to 27.3% of the American population, with Pakistani females earning more on average ($44,019) than both male Pakistanis ($42,718) and male Americans ($41,965) as well as American females ($39,890). However, this being said US banks charge higher processing fees than the other major countries; it costs some $9.45 per $100 that is sent abroad (2009) for remittance transfers, the most expensive of all the four largest countries with Pakistani diasporas.[15] In contrast, the UK charges $5.40, Saudi Arabia $4.55, and the UAE $4.15 per $100.[15] Interestingly, after September 11th, 2001 Pakistani-American remittances dramatically increased.[16]

Pakistani-American.

Pakistan's remittances.
(World Bank)

Importance:— Remittances sent to Pakistan are increasingly playing a prominent role in the development of its economy, who's GINI coefficient has hovered around the 0.34-0.39 mark for several decades since the 1971 Pakistani Civil War.[1] According to the Asian Development Bank, in 1973, a total of $136 million in remittances was sent to the country[2] (with the low figure largely explained by unskilled emigration to countries such as the UK). Slightly less than a decade later this had increased to $2,116 million[2] (with skilled professionals now playing a more prominant role). In 1991 this fell to $1,848 million,[2] but by 2002 this had recovered to around $2,389 million.[2] In 2012 the figure almost sextupled to $13,920 million, and in 2013 this had increased to $14,900 million.[3] Middle-income countries received $410,000 million in remittances in 2013; a growth of 36% since 2000.[4] India sent $71,000 million,[3] with a diaspora of of 25 million based on figures from 2013,[5] and China $60,000 million[3], with the diaspora amounting to 50 million (however, the global Chinese diaspora is very difficult to quantify, however estimates range from 45 million (2013) to 50 million (2016), excluding those of partial Chinese descent).[6][7] According to the BBC, the Pakistani diaspora amounted to 4.2 million people in 2004.[8] However other sources claim that there are between 4 million in 2009 to 7 million in 2010 (with one source claiming that it may be as high as 10 million based on 2011 figures).[9][10][11][12] In 2016, for the first time, remittances surpassed $20 billion dollars; (out of $441 billion dollars worth of remittances generated worldwide),[13][n. 3] from a diaspora of 10 million (2015).[14][n. 4]

Pakistani-American.

History:— In 1973, the UK accounted for 54% ($73 million) of total remittances sent to Pakistan, which however decreased to 7% ($459 million) by 2008.[2] This was as a result of increased migration to Saudi Arabia and the UAE, which gradually contributed to an increasing share of total remittances obtained.[1] In 1981 Saudi Arabia accounted for as much as 47% ($984 million) of the total and the UAE amounted to 13% ($265 million). By 2008, each of these respective countries contributed to a 19% share ($1,251 million) and 17% ($1,090 million).[2] Pakistani-Americans have also contributed to a greater share of these remittances, increasing from 7% ($10 million) in 1973 to around 27% ($1,762 million) by 2008.[2] Generally, remittances have been increasing year on year since the 1990s. The ADB cites a study that suggests a 10% increase in income leads to a 3.6% increase in remittances per person.[2] Education also seems to be a prime factor in increasing remittances; 53-55% (2009) of Pakistani-Americans for example hold at least a bachelors level degree, compared to 27.3% of the American population, with Pakistani females earning more on average ($44,019) than both male Pakistanis ($42,718) and male Americans ($41,965) as well as American females ($39,890). However, this being said US banks charge higher processing fees than the other major countries; it costs some $9.45 per $100 that is sent abroad (2009) for remittance transfers, the most expensive of all the four largest countries with Pakistani diasporas.[15] In contrast, the UK charges $5.40, Saudi Arabia $4.55, and the UAE $4.15 per $100.[15] Interestingly, after September 11th, 2001 Pakistani-American remittances dramatically increased.[16]

Sources

Further Reading

Footnotes

  1. ^ Curiously, at least $14.36 Billion dollars were sent to India from Pakistan in 3 years, figures of which are included in the total Indian remittance figures.
    1. From Pakistan to India: $14.36 billion in remittances over 3 years. February 28th, 2016. Times of India. Retrieved March 29th, 2016.
  2. ^ According to the Express Tribune, many Pakistanis are plagued by land grab problems when they leave Pakistan from relatives; "Almost 10 million overseas Pakistanis, who contribute over $18.45 billion to the national economy, are plagued by problems such as land grabbing on properties back home and a general lack of support from the country’s diplomatic missions abroad, a document submitted by a Senate panel stated on Wednesday".
    1. Correspondent (June 9, 2016). Overseas Pakistanis face property grab back home. The Express Tribune. Retrieved August 10th, 2016.
  3. ^ Curiously, at least $14.36 Billion dollars were sent to India from Pakistan in 3 years, figures of which are included in the total Indian remittance figures.
    1. From Pakistan to India: $14.36 billion in remittances over 3 years. February 28th, 2016. Times of India. Retrieved March 29th, 2016.
  4. ^ According to the Express Tribune, many Pakistanis are plagued by land grab problems when they leave Pakistan from relatives; "Almost 10 million overseas Pakistanis, who contribute over $18.45 billion to the national economy, are plagued by problems such as land grabbing on properties back home and a general lack of support from the country’s diplomatic missions abroad, a document submitted by a Senate panel stated on Wednesday".
    1. Correspondent (June 9, 2016). Overseas Pakistanis face property grab back home. The Express Tribune. Retrieved August 10th, 2016.

References

  1. ^ a b c d Vaqar Ahmed, Guntur Sugiyarto, Shikha Jha (February 2010). ADB Economics Working Paper Series Remittances and Household Welfare: A Case Study of Pakistan. Working Paper Series. No. 194. Asian Development Bank. pp. 6. Retrieved 20 March 2014.
  2. ^ a b c d e f g h i j k l m n o p Vaqar Ahmed, Guntur Sugiyarto, Shikha Jha (February 2010). ADB Economics Working Paper Series Remittances and Household Welfare: A Case Study of Pakistan. Working Paper Series. No. 194. Asian Development Bank. pp. 7. Retrieved 20 March 2014.
  3. ^ a b c d e f Dawn (23rd December 2013). Overseas Pakistanis send $14.9bn as global remittances grow. Dawn.com Retrieved 20th March 2014.
  4. ^ a b Developing Countries to Receive Over $410 Billion in Remittances in 2013, Says World Bank. October 2, 2013. World Bank. Retrieved July 31st, 2015.
  5. ^ a b S. Irudaya Rajan (12 August 2015). India Migration Report 2014: Diaspora and Development. Routledge. p. 73. ISBN 978-1-317-32479-9.
  6. ^ a b Li Wei (16 October 2015). Multilingualism in the Chinese Diaspora Worldwide: Transnational Connections and Local Social Realities. Taylor & Francis. pp. 16–17. ISBN 978-1-317-63897-1.
  7. ^ a b S. Cornelissen; F. Cheru; T. Shaw (26 January 2016). Africa and International Relations in the 21st Century. Palgrave Macmillan UK. p. 205. ISBN 978-0-230-35574-3.
  8. ^ a b Marie Gillespie, Sadaf Rivzi, Matilda Andersson, Pippa Virdee, Lucy Michael, Sophie West (2009). Pakistan Connection Diasporas @ BBC World Service Audience Research Report. Open University. pp. 68. Retrieved 20th March 2014.
  9. ^ a b Md Mizanur Rahman (10 April 2015). International Migration and Development in South Asia. Routledge. p. 48. ISBN 978-1-317-48484-4.
  10. ^ a b Rashid Amjad; Shahid Javed Burki (13 April 2015). Pakistan. Cambridge University Press. p. 162. ISBN 978-1-107-10952-0.
  11. ^ a b Prakash C. Jain; Ginu Zacharia Oommen (26 August 2015). South Asian Migration to Gulf Countries: History, Policies, Development. Routledge. p. 21. ISBN 978-1-317-40886-4.
  12. ^ a b Md Mizanur Rahman; Tan Tai Yong (10 April 2015). International Migration and Development in South Asia. Taylor & Francis. p. 95. ISBN 978-1-317-48483-7.
  13. ^ a b Pakistan on 8th position with $20.1 billion remittances. March 25, 2016. Dawn. Retrieved March 29th, 2016.
  14. ^ a b Correspondent (June 9, 2016). Overseas Pakistanis face property grab back home. The Express Tribune. Retrieved August 10th, 2016.
  15. ^ a b c d Vaqar Ahmed, Guntur Sugiyarto, Shikha Jha (February 2010). ADB Economics Working Paper Series Remittances and Household Welfare: A Case Study of Pakistan. Working Paper Series. No. 194. Asian Development Bank. pp. 8. Retrieved 20 March 2014.
  16. ^ a b Hisaya Oda (March 2009). Pakistani Migration to the United States: An Economic Perspective. p. 1. Institute of Developing Economies (IDE Discussion Paper No. 196). Retrieved July 31st, 2015.
  17. ^ a b c d Overseas Pakistanis’ remittances amount to $18.4bn. July 14, 2015. Pakistan Today. Retrieved July 31st, 2015.
  18. ^ a b Shahid Iqbal (July 16, 2016). $20 billion remittances received in FY16. Dawn. Retrieved August 10th, 2016.
  19. ^ a b c d e f g h i j k l Kazim Alam (July 16, 2016). Saudi Arabia remains largest source of remittances for Pakistan. The Express Tribune. Retrieved August 10th, 2016.

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