KARACHI: Saudi Arabia and the United Arab Emirates (UAE) remained the top contributors to Pakistani remittances during the first two months of the current fiscal year, though there was a minor decrease in the overall inflow of money during the same period, according to the official data.
On a cumulative basis, workers’ remittances stood at $3.73 billion during July-August FY20 compared with $4.07 billion recorded in the same period last year, showing a decline of 8 percent.
During July 2019, the inflow of workers’ remittances amounted to $2.04 billion, 23.91 percent more than June 2019 and 2.9 percent more than July 2018. The inflows during August 2019 declined by $348.4 million to $1.69 billion from $2.034 billion, according to the State Bank of Pakistan (SBP).
The country’s central bank termed the drop a “seasonal factor” due to Eid Al-Adha that fell on August 12, 2019. “Usually before the Eid, the inflows remain higher than average as workers send more remittances to their families [for Eid-related expenses]. This year the inflows starting pouring in in July 2019,” SBP’s chief spokesman, Abid Qamar, told Arab News.
“Last year, the Eid was celebrated on August 22 and the inflows were received within the month of the August 2018 and the drop was witnessed in September 2018,” he added. “This is a seasonal factor that can be witnessed during Ramadan and around the Muslim festivity of Eid Al-Adha every year.”
During the first two months of the current fiscal year, Pakistan received $848 million from Saudi Arabia as compared to $903 million during the same period last year. The country had received $5 billion only from Saudi Arabia out of a total inflow of $21.8 billion in 2018.
Since the opening of Pakistani workers’ entry in the gulf job market, the Kingdom of Saudi Arabia has remained the top destination for Pakistani workers where 5.3 million of them have found jobs since 1971.
The official data of the Bureau of Emigration & Overseas Employment (BEOE) show that the number of Pakistani workers to Saudi Arabia increased from 100,910 during 2018 to 184,424 by August 2019.
“A major reason behind this increase is escalation in oil prices in 2019 which positively affected the gulf economies that opened up employment opportunities for expatriate workers and resultantly an increasing trend in export of manpower was witnessed during the first half of 2019, mainly in KSA and UAE,” the BEOE report says.
Inflows from the UAE, the second largest contributor to Pakistani remittances, also declined from $919 million to $775 million during the first two months of FY20, showing a decline of 15.6 percent.
Analysts say this decline in the remittances can be attributed to the falling number of workers in the Emirates which, according to the BEOE, dropped from 208,635 in 2018 to 139,152 till August 2019.
“Around 35,000 Pakistani workers have returned from the Middle East. Besides, the activities of Pakistani workers were reduced due to various issues and this had a major impact on the inflow of remittances,” Dr. Bilal Ahmed, a senior economist, told Arab News.
To arrest the decline in inflows, analysts suggest the government of Pakistan should jack up diplomatic efforts with Saudi Arabia and the UAE and convince them to accommodate more human capital from Pakistan.
“Pakistan must negotiate with Saudi Arabia and the UAE to find a way out for those whose visas have expired so that they could continue their jobs there,” he added.
Saudi Arabia remains top contributor to Pakistan’s remittances despite seasonal shock
Saudi Arabia remains top contributor to Pakistan’s remittances despite seasonal shock
- There was an overall decline in workers’ remittances, according to official data
- The number of overseas workers has increased by 46 percent during the first half of 2019, says BEOE
Islamabad says surge in aircraft orders after India standoff could end IMF reliance
- Pakistani jets came into the limelight after Islamabad claimed to have shot down six Indian aircraft during a standoff in May last year
- Many countries have since stepped up engagement with Pakistan, while others have proposed learning from PAF’s multi-domain capabilities
ISLAMABAD: Defense Minister Khawaja Asif on Tuesday said Pakistan has witnessed a surge in aircraft orders after a four-day military standoff with India last year and, if materialized, they could end the country’s reliance on the International Monetary Fund (IMF).
The statement came hours after a high-level Bangladeshi defense delegation met Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu to discuss a potential sale of JF-17 Thunder aircraft, a multi-role fighter jointly developed by China and Pakistan that has become the backbone of the Pakistan Air Force (PAF) over the past decade.
Fighter jets used by Pakistan came into the limelight after Islamabad claimed to have shot down six Indian aircraft, including French-made Rafale jets, during the military conflict with India in May last year. India acknowledged losses in the aerial combat but did not specify a number.
Many countries have since stepped up defense engagement with Pakistan, while delegations from multiple other nations have proposed learning from Pakistan Air Force’s multi-domain air warfare capabilities that successfully advanced Chinese military technology performs against Western hardware.
“Right now, the number of orders we are receiving after reaching this point is significant because our aircraft have been tested,” Defense Minister Asif told a Pakistan’s Geo News channel.
“We are receiving those orders, and it is possible that after six months we may not even need the IMF.”
Pakistan markets the Chinese co-developed JF-17 as a lower-cost multi-role fighter and has positioned itself as a supplier able to offer aircraft, training and maintenance outside Western supply chains.
“I am saying this to you with full confidence,” Asif continued. “If, after six months, all these orders materialize, we will not need the IMF.”
Pakistan has repeatedly turned to the IMF for financial assistance to stabilize its economy. These loans come with strict conditions including fiscal reforms, subsidy cuts and measures to increase revenue that Pakistan must implement to secure disbursements.
In Sept. 2024, the IMF approved a $7 billion bailout for Pakistan under its Extended Fund Facility (EFF) program and a separate $1.4 billion loan under its climate resilience fund in May 2025, aimed at strengthening the country’s economic and climate resilience.
Pakistan has long been striving to expand defense exports by leveraging its decades of counter-insurgency experience and a domestic industry that produces aircraft, armored vehicles, munitions and other equipment.
The South Asian country reached a deal worth over $4 billion to sell military equipment to the Libyan National Army, Reuters report last month, citing Pakistani officials. The deal, one of Pakistan’s largest-ever weapons sales, included the sale of 16 JF-17 fighter jets and 12 Super Mushak trainer aircraft for basic pilot training.
