Pakistan 4th largest source of remittances to India

[Trisonics]

I have no idea how remittances work for Pakistan but is it possible that they get routed through India? That in my mind could be a possible reason.

 

[911]

In 2014, Bangladesh was 5th largest source for remittance for India

BD 5th remittance source of India - The New Nation
BD 5th remittance source of India

Published at: 28th-Feb-2014

DESPITE India's so-called regional superpower status and Bangladesh's tiny economic outlook, one may believe it or not but Bangladesh is now the fifth largest remittance earning source for India. A Bangalore based magazine has disclosed that expatriate Indians working in Bangladesh have successfully drained away US$ 3,716 million alone last year as half a million Indians are now working in Bangladesh; mostly in the readymade garment industry and in NGOs'. While most Indian media and politicians are continuously making the point that India is inundated by illegal migrants from Bangladesh, the report in Silicon India showed that the reverse is actually true . It tells us that it is not only the richer countries but Bangladesh also which is providing employment to the bulk of Indians and they are sending a overwhelming flow of remittance to their homes. The report mentioned about scores of illegal immigrants from the Indian states of West Bengal, Meghalaya, Assam, Tripura and Mizoram who have entered Bangladesh and joined the job market. The Indian central government's documents also confirmed the fact as per the news report. As we see, the World Bank figure showed that India earned the highest value of remittances in the world. It earns US$ 71 billion annually followed by China which earns $60 billion. It is indeed surprising that Bangladesh rests in the list of India's top remittance sources along with the world's top developed nations. According to descending order of earning, Bangladesh stands fifth among India's top remittance providers only next to UAE, USA, KSA and UK. Last year Bangladesh provided 5 percent of the total remittance earnings of India which had a eight times larger population and a 23 times larger landmass. Estimations suggest that the rising flow of remittance will only exponentially increase in the near future. We know in an age of free trade and mobility of capital it is very natural that the two countries with a long shared border and economic potentials will reciprocally share their resources to develop the region. But, it does not take an economist to know that India only believes in one-way traffic and it wants to be at the receiving end. Apart from regular killings, rapes, intimidation and torture of unarmed people on the high rise barbed border, Bangladeshis' are clearly not getting similar treatment from India when it comes about job opportunities or duty free export access into the Indian market. India's exports to Bangladesh are now around $10 billion including remittances while our exports to India now stands at around $600 million. This is definitely not the win-win situation and can only be compared with a colonial trading system. The breaking of the news by the Indian magazine has come as an eye opener to the nation and we suggest that the government take a review of the situation to apprise the nation of the reality in the ground. We don't know about the employers and the internal police verification system. We don't know how Bangladesh Bank is monitoring transfer of money by Indian expatriates. Some politicians may compromise, but the nation must take hold of its affairs.

Bangladeshi source

 

[It.is.all.mudi's.fault]

alright then...


ahhh that make sense...however if the remittance is coming via Dubai then how come Pakistan is appearing there??

That makes sense, so they must be calling this funny trade between India and Pakistan via Dubai as "remittances".

The reason why these are called remittances is because this money is being transferred to Indians as remittance. Suppose you are an India businessman who sell something to a Pakistani businessman, but since border trade is non existent and trade in a lot of things is outright prohibited, you load your goods onto a Dubai bound container, where that good is re-labelled and loaded onto a Pakistan bound container.

Now since you have not legally brought that good from India, you cannot pay that Indian business under provision of Traded items , and it probably is not good from taxation pov also, so you pay that businessman as remittance;or pay some Indian in Pakistan who then transfer that money into the account of Indian businessman,or settle account on his behalf with a Pakistani businessman from whom he has brought something.

 

[Sky lord]

The reason why these are called remittances is because this money is being transferred to Indians as remittance. Suppose you are an India businessman who sell something to a Pakistani businessman, but since border trade is non existent, you load your goods onto a Dubai bound container, where that good is re-labelled and loaded onto a Pakistan bound container.

Now since you have not legally brought that good from India, you cannot pay that Indian business under provision of Traded items , and it probably is not good from taxation pov also, so you pay that businessman as remittance or settle account on his behalf with a Pakistani businessman from whom he has brought something.

Yeah, that sounds reasonable .....trust desis to find a loophole.

 

[cybertron]

If it was other way round and Pakistanis in India were sending money back to Pakistan then we would have Bhakts screaming and threatening. RSS,BJP, SS, and other creating havoc. While nobody in Pakistan even said anything.

Infact, it would have been the other way around. You guys would have been all over Balochis, for being the traitors -- accepting all that Indian money and betraying the land of pure.
Perspective!

 

[911]

The reason why these are called remittances is because this money is being transferred to Indians as remittance. Suppose you are an India businessman who sell something to a Pakistani businessman, but since border trade is non existent and trade in a lot of things is outright prohibited, you load your goods onto a Dubai bound container, where that good is re-labelled and loaded onto a Pakistan bound container.

Now since you have not legally brought that good from India, you cannot pay that Indian business under provision of Traded items , and it probably is not good from taxation pov also, so you pay that businessman as remittance;or pay some Indian in Pakistan who then transfer that money into the account of Indian businessman. settle account on his behalf with a Pakistani businessman from whom he has brought something.


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There are probably not even 1000 Indians in Pakistan,for transferring remittances to the tune of 2% of Pak's GDP they should have been insanely rich people in Pakistan.

I only read about illegal dth services in Pakistan in past. But 4b is huge.

 

[It.is.all.mudi's.fault]

I only read about illegal dth services in Pakistan in past. But 4b is huge.

This is a black market that has been created by Pakistanis because of their "hoe kan be trede bith ze ebil yindoos" mentality, even if it is good for their own businessman. But greed is a strong emotion.

This inflow is from Pakistan because they have banned import of a lot of things, but since India has given MFN status to India, there is much less need from Indian side to indulge in creative accounting.

 

[somebozo]

These are Altafis mostly sending their extortion money back home to support their families..this may sound like a joke..but many Altafis actually support their family back in India via their earnings in Pakistan....Many of these Altafis saw civilization for the first time in their generations after arriving in Pakistan...

 

[Indika]

4 billion dollars (24k crore) is huge amount of money. Seems it is pakistan govt trying to funnel money to its deep assets like gilani,yasin malik...etc I would take this figure with pinch of salt.

 

[Khan_patriot]

What the fak how is this even possible

 

[Bindovi]

Looks like Pakistan has lots of Indian working and sending remittance back to India. What if it was other way round if Pakistanis in India were sending money back to Pakistan ? We would have Bhakts screaming and threatening.

Pakistan 4th largest source of remittances to India | Business Standard News

Pakistan 4th largest source of remittances to India
India tops remittance receipts globally with $72.2 billion, says World Bank report
BS Reporter | New Delhi December 24, 2015 Last Updated at 00:30 IST

• ALSO READ
  Crude oil could hurt remittances India jumps 4 spots on World Bank's ease of doing business list Outward remittances stay elevated in August World Bank keeps faith in India story India to import 1,000 tonne onions from Pakistan, China
  Surprising as it may seem, but Indians who have migrated to Pakistan are expected to remit back home a staggering $4.9 billion in 2015. This would make Pakistan the fourth largest source of India's remittances this year, according to a new study by the World Bank.
  
  Another interesting statistic the study throws out is that the Bangladesh-India corridor ranks third in the list of top migration corridors behind the Mexico-US and the Russia-Ukraine corridors. Bangladeshi migrants residing in India are expected to remit $4.6 billion back home in the current year.
  
  Total remittance flows to India are expected to touch a staggering $72.2 billion in 2015, making it the highest recipient worldwide, says the World Bank's Migration and Remittances Factbook 2016. China ranks second, with remittance flows expected to touch $63.9 billion, followed by the Philippines ($29.7 billion), Mexico ($25.7 billion) and France ($24.6 billion).
  
  Globally, remittances are estimated to exceed $600 billion in 2015. Of this, developing countries are expected to receive a lion's share estimated at $441 billion.
  
  To put this figure in perspective, this amount is roughly three times the official development assistance these countries receive. But, this figure might well be underestimated, too. As these figures don't include unrecorded flows through formal and informal channels, the actual size of remittances is likely to be significantly larger than what the report noted. Migrants from India are largely concentrated in the United Arab Emirates (2.3 million), followed by the US (2.1 million), Saudi Arabia (2 million) and Pakistan (1.4 million). These four countries along with Kuwait and Qatar account for roughly 69 per cent of total remittance flows into India.
  
  The UAE leads the pack with transfers through this corridor expected to touch $13.2 billion in 2015. It is followed closely by the US ($11.5 billion), Saudi Arabia ($11 billion), Pakistan ($4.9 billion), Kuwait ($4.8 billion), and Qatar ($4.2 billion).
  
  
  
  The top migrant destination is the US, followed by Saudi Arabia, Germany, Russian, UAE, the UK, France, Canada, Spain, and Australia. India is the top emigration country with 13.9 million emigrants, followed closely by Mexico at 13.2 million and Russia at 10.9 million.
  
  Worldwide, high-income countries are the main source of remittances. The US tops the list with an estimated $56.3 billion in outflows in 2014. Saudi Arabia ranks the second, followed by Russia, Switzerland, Germany, UAE, and Kuwait.

Basically India get remittance from Nawas Shariff and Co.... , Zardhari and Co.... , Army and ISI and Co....We then send to Afghanistan...

 

[chhota bheem]

These are Altafis mostly sending their extortion money back home to support their families..this may sound like a joke..but many Altafis actually support their family back in India via their earnings in Pakistan....Many of these Altafis saw civilization for the first time in their generations after arriving in Pakistan...

lol are you for real bro,are you refering to mujahirs bro

 

[911]

lol are you for real bro,are you refering to mujahirs bro

This is not a joke. Muhajirs are not integrated well in Pakistan.

 

[unbiasedopinion]

Last I heard there were only some 20000 RAW agents how come suddenly it jumped to 1.4 million?? Thats a huge number.
On serious note, There must be some mistake in the article. This cannot be considered true especially if they are sending back $4.2 billion dollars..

 

[Kabira]

Bloody rangers are sleeping in Karachi? yeh zulm ki inteha nai?