Overseas Pakistanis remit $7.4 billion in first four months of FY19

[zip]

A very important thing in a nations economy!!


How?
The money will shore up FE reserves as they end up in banks!

Since there is no actual movement of the money it's like working under induction principle ..In this principle incoming $ always equals to outgoing $ ..If demand varies then there is no other option then purchasing respective currency in open market or reserve bank ..The equation should maintain equilibrium in one way or other ..

 

[Arsalan]

Since there is no actual movement of the money it's like working under induction principle ..In this principle incoming $ always equals to outgoing $ ..If demand varies then there is no other option then purchasing respective currency in open market or reserve bank ..The equation should maintain equilibrium in one way or other ..

Dear, foreign remittance is a big source of building FE reserves. What are you talking about?
These $$ were sent by people working out side Pakistan, they sent this money to their families in Pakistan who received PKR and $$ went to FE reserves. Its not that difficult to understand.

 

[zip]

Dear, foreign remittance is a big source of building FE reserves. What are you talking about?
These $$ were sent by people working out side Pakistan, they sent this money to their families in Pakistan who received PKR and $$ went to FE reserves. Its not that difficult to understand.

I am talking about hawala / hundi system ..They operate parallel to bank system but they are not totally isolated and work on supply and demand ..

 

[aziqbal]

Remittances

Yes helps bring foreign exchange which Pakistan lacks due to poor exports

This year our remittances will match our exports at $22 billion so very very important

Also help on macro-economic and social-economic factors

Remittances are very important for Pakistan

Addding atleast 5% to GDP it’s a no brainer

Just study Poland as a example

 

[Arsalan]

I am talking about hawala / hundi system ..They operate parallel to bank system but they are not totally isolated and work on supply and demand ..

OK we were talking about remittance via banks so no idea that you switched to Hawala system.
Still, even with Hawala, major amount of that money ends up at banks since the outflow is limited.