KARACHI: Gulf countries, including Saudi Arabia and the United Arab Emirates (UAE), contributed over 54 percent to Pakistan’s remittances during the last fiscal year, data compiled by the central bank showed on Monday, providing a much-needed relief to the cash strapped economy of the South Asian nation.
Pakistan received $31.2 billion from overseas workers in FY22, indicating an annual increase of 6.1 percent in remittances. The inflows from the gulf countries stood at 54.1 percent — or $16.95 billion — of the total remittances received by the country.
Pakistani workers living in Saudi Arabia remitted $7.74 billion during the last fiscal year, according to the State Bank of Pakistan (SBP).
The UAE remained the second largest contributor with $5.88 billion inflows during FY22. The remittances received from other gulf countries, including Bahrain, Kuwait, Qatar and Oman, collectively stood at $3.62 billion as compared to $3.33 billion which the country received in FY21.
Pakistani analysts say the gulf region plays a major role in supporting Pakistan’s economy, not only through remittances also by providing energy security.
“The inflows from Saudi Arabia, the UAE and other Middle Eastern countries play a significant role in supporting Pakistan’s balance of payment situation,” Tahir Abbas, head of research at Arif Habib Limited, told Arab News.
“Pakistan not only receives major remittance inflow from gulf nations but its energy security is also dependent on the region, particularly Saudi Arabia,” he added.
The gulf region offers huge employment opportunities to a large number of Pakistani nationals. According to Pakistan’s Bureau of Emigration & Overseas Employment, more than 2.33 million Pakistanis were employed by the region between 2017 and June 2022. Among them, 1.19 million people were accommodated by Saudi Arabia alone.
“Saudi Arabia and the UAE have played a major role in strengthening Pakistan’s economy by providing employment opportunities to a major chunk of its overseas labor force,” Samiullah Tariq, director research at the Pakistan Kuwait Investment Company, told Arab News.
“The remittances play a great role in supporting the country’s balance of payment as the inflows enable Pakistan to finance its imports,” he continued. “The remittances also support the Pakistani rupee which, in the current situation, is under pressure. It also eases off pressure on interest rate.”
Despite record remittance inflows, the Pakistani rupee on Monday hit record low against United States dollar and traded at around Rs216.01 in the open market.
However, analysts said the recent decline of rupee had taken place due to the landslide victory of former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party in recent by-elections in Punjab province.
“The ongoing political uncertainty may also have its implications for the IMF loan program,” Khurram Schehzad, CEO of Alpha Beta Core, a financial advisory firm, told Arab News. “The stock market is also down more than 700 points.”
Gulf nations contributed 54 percent to Pakistan's remittance inflows during last fiscal year - SBP
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Gulf nations contributed 54 percent to Pakistan's remittance inflows during last fiscal year - SBP
- The central bank says Pakistan received highest ever remittances of $31.2 billion in FY22
- The Pakistani rupee hit another record low of Rs216.01 against the US dollar on Monday
Pakistan Air Force conducts successful test of air-launched cruise missile
- The indigenously developed ‘Taimoor’ missile has a range of 600 kilometers and carries a conventional warhead
- The missile is designed to fly at low altitudes, which enables it to evade hostile air, missile defense systems
ISLAMABAD: The Pakistan Air Force (PAF) has successfully conducted a test of an air-launched cruise missile, ‘Taimoor,’ the Pakistani military said on Saturday, marking another significant milestone in advancement of national aerospace and defense capabilities.
The indigenously developed Taimoor weapon system is capable of engaging enemy land and sea targets with high precision. The missile has a range of 600 kilometers and carries a conventional warhead.
The missile test comes months after a brief but intense military conflict between Pakistan and India in which the nuclear-armed neighbors exchanged missile and artillery fire and deployed drones and fighter jets.
Equipped with state-of-the-art navigation and guidance system, Taimoor is designed to fly at very low altitudes, enabling it to effectively evade hostile air and missile defense systems.
“Its precision-strike capability significantly enhances the conventional deterrence and operational flexibility of Pakistan Air Force, further strengthening the country’s overall defense posture,” said the Inter-Services Public Relations (ISPR), the military’s media wing.
“The successful flight test underscores the technical maturity, innovation and self-reliance achieved by Pakistan’s defense industry.”
The missile’s launch was witnessed by senior officers of the armed forces along with distinguished scientists and engineers, who played a pivotal role in the development of this advanced weapon system.
PAF’s Air Chief Marshal Zaheer Ahmed Baber Sidhu congratulated the scientists, engineers and the entire PAF team on this remarkable achievement, lauding their professional excellence, dedication and unwavering commitment to strengthening Pakistan’s defense capabilities.
“The air chief reaffirmed that such accomplishments are a testament to the nation’s resolve to achieve technological self-sufficiency and maintain a credible conventional deterrent in the evolving regional security environment,” the ISPR said.
“The successful test of the Taimoor weapon system reflects Pakistan Air Force’s continued pursuit of operational readiness, technological superiority and national security objectives.”
Pakistan has placed greater emphasis on battle readiness in recent months. On Dec. 15, Pakistan Navy test-fired surface-to-air missile in the northern Arabian Sea.
Prior to that, Chief of Defense Forces Field Marshal Asim Munir visited frontline garrisons of Gujranwala and Sialkot to observe a field training exercise involving tanks and drones, where he had highlighted the importance of technological adaptability, saying modern warfare required agility, precision, situational awareness and rapid decision-making.
