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
World Bank approves $400 million to expand water, sanitation services in Pakistan’s Punjab
- Project aims to improve access for 4.5 million people and curb waterborne diseases
- Program to prioritize women’s participation and climate-resilient urban infrastructure
ISLAMABAD: The World Bank this week approved $400 million for a new project to expand access to safe water, sanitation and hygiene services for around 4.5 million people in Pakistan’s most populous Punjab province, aiming to curb waterborne diseases and reduce long-term public health costs.
The project, known as the Punjab Inclusive Cities Program (PICP), is the second phase of the World Bank-supported Pakistan Urban Water, Sanitation and Hygiene Services Multiphase Programmatic Approach. It will focus on rehabilitating water supply networks, sewerage systems and wastewater treatment plants, while expanding stormwater drainage infrastructure across 16 secondary cities in Punjab.
Punjab faces persistent challenges in providing safe drinking water and adequate sanitation, with many urban households relying on contaminated sources. Weak infrastructure and limited hygiene services contribute to high rates of waterborne diseases such as diarrhea, typhoid and hepatitis, which disproportionately affect children and low-income communities.
“Reducing child stunting is essential for Pakistan’s future. Through the Punjab Inclusive Cities Program, we are investing in safe water, sanitation, and hygiene services to break the cycle of malnutrition and disease that holds back so many children from reaching their full potential,” the World Bank quoted its Country Director for Pakistan, Bolormaa Amgaabazar, as saying in a statement.
“In collaboration with the Punjab Government, the program represents a significant step forward in improving urban infrastructure and strengthening local institutions, thereby laying the foundation for healthier communities and a more prosperous Pakistan.”
Child stunting, a form of chronic malnutrition that leaves children too short for their age, is often linked to repeated infections, poor sanitation and unsafe drinking water, and remains a major public health concern in Pakistan.
Beyond water and sanitation, the project will also support solid waste management systems to improve sanitary waste disposal, extending services to an additional two million people in Punjab’s urban areas. The program will strengthen the capacity of local governments, including efforts to improve revenue generation and long-term service sustainability.
“The program complements infrastructure investments with capacity building and revenue generation, helping to ensure that service delivery is well sustained,” the statement quoted Amena Raja, Senior Urban Specialist at the World Bank, as saying.
“It will also help Punjab’s cities better withstand floods and droughts, ensuring urban development is both environmentally responsible and resilient to climate change.”
The program includes a gender-focused component, prioritizing the hiring of women in decision-making roles, establishing gender-compliant service desks and supporting skills development. It also aims to mobilize private capital to support water and sanitation services in Punjab’s secondary cities.
Pakistan has been a member of the World Bank since 1950 and has received more than $48 billion in assistance since. The Bank’s current portfolio in the country comprises 54 projects with total commitments of $15.7 billion, while its private-sector arm, the International Finance Corporation, has invested about $13 billion since 1956.
Earlier this year, Pakistan and the World Bank signed a first-of-its-kind agreement for a plan to focus $20 billion in lending to the cash-strapped nation over the coming decade on development issues like the impact of climate change as well as boosting private-sector growth.
