Remittances To Maintain Handsome Growth

By Ibrahim Amin, Chairman, Dellsons Group

LAHORE? -? Brain drain from Pakistan over the past couple of years has been a matter of concern which is both good and bad news. Good because these Pakistanis will have a better future and will send remittances back home to support their families and Pakistan, bad because Pakistan loses quality resources to other countries who have not put in the necessary resources for their development, according to an expert Ibrahim Amin.

?

According to the Bureau of Emigration, more than 1.4 million Pakistanis moved to different countries in 2023 and 2024 (October) after spending a significant amount of savings on the settlement process. Their primary objective for migration to other countries is to earn livelihoods for themselves and their families based in Pakistan which they were not able to do while living in their homelands due to limited employment opportunities.

He mentioned that Pakistan witnessed a marked growth in remittances and in October, over $3 billion were received from expatriates, and remittance inflows of $11.8 billion were reported in the last four months with 35% growth from the same period of the previous year. The remittance inflows are projected to touch a mark of $36 billion—an all-time high level—by the end of the current financial year, which may also shore up the current account in surplus. Most of overseas Pakistanis are living in foreign countries without their families sacrificing memorable moments of their lives which they could have spent with their families. These overseas Pakistanis should be facilitated and supported to provide easy access to banks and financial services to enable them to send their remittances back home. This enablement should come through digitization, ease of use and at bare minimum cost, said Ibrahim Amin, who is the Chairman Dellsons Group who holds events in for overseas Pakistanis Gulf countries.

For many years, overseas Pakistanis have faced high fees and delays when sending money home, resulting in substantial losses and limited ease of access for recipients. Now, the adoption of digital solutions, like mobile wallets, digital banking, and real-time settlement systems, can bridge these gaps, making remittances faster, cheaper, and more accessible, he said and added. It has also been noted that non-residents are not aware of various incentives and products announced by the government such as Sohni Dharti, Asaan Digital Remittance Account and Roshan Digital Account.

The State Bank of Pakistan has taken various steps recently which is translating into dividends. It announced a subsidiary scheme for financial institutions and exchange companies to bring more remittances to the country. Commercial banks are encouraged to set up exchange companies to streamline foreign exchange operations with enhanced monitoring and oversight.

The Pakistani government’s emphasis on digital transformation has made strides through initiatives such as the RAAST payment system—a State Bank of Pakistan (SBP) initiative designed to facilitate instant, low-cost digital payments across the country. RAAST aims to reduce reliance on cash and ensure that remittances reach recipients quickly and securely. With technology at its core, RAAST enables overseas Pakistanis to send remittances directly to their loved ones without intermediaries, reducing transaction fees and promoting financial inclusion.

Moreover, the recent partnership between Pakistan’s RAAST system and the BUNA payment system—a multi-currency payment system for Arab states—represents a critical step forward. This collaboration allows for real-time payments between Pakistan and Middle Eastern countries, where a large portion of overseas Pakistanis reside and work.

By facilitating faster cross-border transactions, this partnership promises to bolster remittance inflows while ensuring that funds are sent in a secure, regulated environment. However, a better communication strategy is needed to reach out to non-resident Pakistanis which will compound the dividend being reaped by Pakistan.

Courtesy of The Nation