KARACHI: Saudi Arabia remains the main source of Pakistan’s remittances despite global business shutdowns amid the coronavirus pandemic, central bank data showed on Monday.
Overseas Pakistani workers sent about $18.78 billion back home between July 2019 and April 2020, 5.5 percent more than in the previous fiscal year, with $4.4 billion remitted from Saudi Arabia alone, according to a statement issued by the State Bank of Pakistan (SBP).
Contrary to the expectations of most economists that money inflows would decline as many workers have been furloughed and repatriated amid the pandemic, $451.4 million was sent back home from Saudi Araba by Pakistani workers — 5.4 percent more than last year and only 0.2 percent less than in March 2020, SBP data showed.
Total remittances the country received in April amounted to $1.79 billion, 5.5 percent less than in the previous month.
The US emerged as Pakistan’s second largest remittance contributor after Saudi Arabia, with inflows of $401.9 million in April, followed by the United Arab Emirates with $353.8 million, and the United Kingdom with $226.6 million.
According to experts, there has been an increase in the use of official channels for money transfers in the wake of international flight suspensions and movement restrictions.
“As the airline industry is not operational, people who used to send money through personal contacts have resorted to the official channels,” Muzamil Aslam, senior financial expert, told Arab News.
But since layoffs are still expected to affect overseas Pakistanis, a government intervention may be required to further discourage unofficial transfers to sustain money inflows from abroad.
“Sustaining remittances with expected job losses abroad requires an unprecedented intervention to bring between $5 billion and $10 billion of hawala or hundi money through legal channels,” said Dr. Khaqan Hassan Najeeb, former adviser at the Ministry of Finance.
Hawala and hundi are informal ways of transferring money across borders.
Najeeb told Arab News that incentive programs such as lotteries could help put an end to illegal money transfers.
According to the Ministry of Finance, from July withholding tax exemption will be introduced for incoming remittances, while National Remittance Loyalty Program will be launched in September in collaboration with major commercial banks and government agencies to incentivize remitters.
Middle Eastern countries are major job markets for Pakistani workers. Since the beginning of this year alone, the region has provided employment to more than 171,500 Pakistanis — nearly 105,000 in Saudi Arabia alone, according to the Bureau of Emigration and Overseas Employment.
Concerns are rising, however, whether workers will still be able to seek overseas jobs, as labor markets, also in the Middle East, have been upended by the coronavirus outbreak.
“More than 100,000 visas were issued prior to COVID-19. Some 65,000 people were ready to fly, but now their future is uncertain,” said Ikram Qureshi of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
“Around 70,000 workers have already registered themselves for repatriation from the Middle east region,” he added.
Pakistan's remittances from Saudi Arabia remain high despite economy slowdown
https://arab.news/rbkjp
Pakistan's remittances from Saudi Arabia remain high despite economy slowdown
- Remittances from Saudi Arabia in April were 5.4 higher than last year
- Inflows through official channels are on the rise amid international movement restrictions
Pakistan says it backs Gaza peace plan, hopes next phase leads to Palestinian state
- Foreign Office says it is not concerned about who joins or stays out of the Abraham Accords
- Pakistan reaffirms rejection of Israel’s recognition of Somaliland, warns of regional instability
ISLAMABAD: Pakistan’s Foreign Office said on Thursday it supported the Gaza peace plan endorsed by the United Nations Security Council, expressing hope its next phase would stabilize the situation in the war-ravaged territory, scale up humanitarian assistance and lead to an independent Palestinian state.
The United States said on Wednesday it was moving into the next phase of a Gaza ceasefire plan. President Donald Trump’s Middle East envoy Steve Witkoff said in a post on X that the second phase will establish “a transitional technocratic Palestinian administration in Gaza” and mark the beginning of “the full demilitarization and reconstruction of Gaza, primarily the disarmament of all unauthorized personnel.”
Commenting on the development, Foreign Office Spokesperson Tahir Andrabi said Pakistan had taken note of the announcement.
“We have seen this social media post about the next phase of the ceasefire agreement in Gaza, and we express the hope that these steps will lead to further stabilization of the situation, and upscaling the humanitarian assistance and end of the sacrifices of the people,” he said while addressing his weekly news conference.
Andrabi said Pakistan had been engaged in the Gaza peace effort as part of a group of Arab and Islamic countries since the initiative was presented by the US president and supported both the plan and the UN Security Council resolution endorsing it.
“We also hope that these efforts will lead to a credible time bound, political process consistent with international legitimacy and relevant UN resolutions to establish an independent, sovereign, contiguous state of Palestine, based on pre-1967 borders with East Jerusalem as its capital,” he added.
Asked about Pakistan’s position on the Abraham Accords, a series of US-brokered agreements normalizing relations between Israel and several Arab states, Andrabi said Islamabad’s stance remained unchanged.
“Our position with respect to it is that there are certain benchmarks that have to be achieved ... And [these relate do] a viable, contiguous state of Palestine, with East Jerusalem as its capital.”
He said Pakistan did not judge other countries’ choices on the accords.
“We are not concerned about who does or who does not join the Abraham Accords,” he said.
SOMALILAND ISSUE
Earlier in his opening remarks, Andrabi reiterated Pakistan’s rejection of Israel’s recognition of Somaliland, a self-declared breakaway region of Somalia, calling the move illegal and warning it could destabilize the Horn of Africa and Red Sea region.
Somaliland declared independence from Somalia in 1991 but is not recognized by the United Nations or the African Union.
Israel’s recent steps to recognize the territory have drawn criticism from Somalia and several Muslim-majority countries.
Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar raised the issue during the 22nd Extraordinary Session of the Organization of Islamic Cooperation Council of Foreign Ministers held in Jeddah on Jan. 10.
“In his address, the DPM-FM strongly condemned the illegal and unlawful recognition by Israel of the Somaliland region, as well as subsequent unwarranted and highly provocative visits of Israeli officials to the territory,” the Foreign Office spokesman said.
“He termed such acts as political aggression and a direct assault on Somalia’s internationally recognized borders, setting a perilous precedent and threatening peace and security in the Horn of Africa, the Red Sea region, and beyond.”
Andrabi said Dar also addressed the Palestinian issue during the session, rejecting proposals for the displacement of Palestinians and reaffirming Pakistan’s long-standing support for a two-state solution.
