Pakistan encourages remittances, targets $22 billion in 2018-19

Pakistan encourages remittances, targets $22 billion in 2018-19
Overseas Pakistanis are expected to remit more money due to new government incentives. (File/AFP)
Updated 30 October 2018

Pakistan encourages remittances, targets $22 billion in 2018-19

Pakistan encourages remittances, targets $22 billion in 2018-19
  • Analysts are predicting a double-digit growth in remittances from more than eight million overseas Pakistanis
  • PM Imran Khan previously approved several incentives to attract remittances through official banking channels

DUBAI: Remittances to Pakistan is expected to hit a record $22 billion in year 2018-19, after government efforts to boost cash inflows in the country, UAE daily Khaleej Times reported.

Analysts are predicting a double-digit growth in remittances from more than eight million overseas Pakistanis, from a previous $19.62 billion received in 2017-18 to $22.19 billion, if trends continue towards the end of the fiscal year.

Pakistan has recorded a 13.14 percent increase in the first quarter of 2018-19 compared to the same period last year, according to State Bank of Pakistan.

In a tweet, Pakistani Prime Minister Imran Khan said the remittance inflows can reach up to $40 billion in the coming years.

Khan previously approved several incentives to attract remittances through official banking channels, including monetary rewards for the use of mobile wallet, as well as rewarding foreign exchange companies and banks that bring in 15 percent more remittances than the previous fiscal year.

Experts also said the devaluation of the rupee in the past 10 months would encourage remittances.

Saudi Arabia has pledged a $6 billion aid to Pakistan during the Future Investment Initiative in Riyadh, after the country sought foreign support amid a massive budgetary gap.

Other countries such as the UAE and China have also pledged financial assistance to the country.