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Pakistanis Remit $5 Billion to Help Relatives in India

RiazHaq

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Haq's Musings: Pakistanis Sent $5 Billion to Relatives in India in 2015

Pakistanis sent nearly $5 billion to help their relatives in India in 2015, according to data released by the World Bank. This makes Pakistan the 4th largest source of foreign remittances to India, putting Pakistan ahead of Kuwait and the United Kingdom. Only United Arab Emirates, United States and Saudi Arabia sent more money to India.


Source: Wall Street Journal

With over 1.4 million Pakistanis born in India, there are literally millions of family connections between the two countries and millions of reasons a person in Pakistan might find a way to get money to relatives in India. The money could be sent for a brother in need, a cousin’s wedding, an uncle’s funeral or even to help educate a niece, according to a report in the Wall Street Journal.

I personally know people in my own circle of friends and family in Pakistan who regularly send money to relatives in India to help them out in times of need. Such remittances are used to build homes, educate children, pay for health care or girls' weddings.

While Muslims in Pakistan have prospered, the Indian Muslims have become the new untouchables in their land of birth. They suffer widespread discrimination in education, employment, housing and criminal justice. Muslims make up 13% of India's population but 28% of Indian prisoners. Similarly, Christians make up 2.8% of India's population but 6% of India's prison population. Meanwhile, the newly elected parliament has just 4% Muslim representation. Housing discrimination in India is so bad that an Indian MP Shashi Tharoor recently tweeted: "Try renting an apartment using a #Muslim name (In #India )".

The latest remittance World Bank data offers yet another confirmation that the South Asian Muslims who migrated from what is now India to Pakistan have fared relatively better in terms of economic and other opportunities. Pakistani Muslims have the means to help their relatives in India. It reinforces my own anecdotal observation during my visits to both countries. I see that my own relatives in Pakistan are much better off than those in India. My Pakistani relatives enjoy better opportunities for education and jobs giving them higher standards of living than those in India.

In fact, Pakistan has continued to offer much greater upward economic and social mobility to its citizens than neighboring India over the last two decades. Since 1990, Pakistan's middle class had expanded by 36.5% and India's by only 12.8%, according to an ADB report titled "Asia's Emerging Middle Class: Past, Present And Future.


Source: ADB
New York Times' Sabrina Tavernise described the rise of Pakistan's middle class in a story from Pakistani town of Muzaffargarh in the following words:

For years, feudal lords reigned supreme, serving as the police, the judge and the political leader. Plantations had jails, and political seats were practically owned by families.

Instead of midwifing democracy, these aristocrats obstructed it, ignoring the needs of rural Pakistanis, half of whom are still landless and desperately poor more than 60 years after Pakistan became a state.

But changes began to erode the aristocrats’ power.
Cities sprouted, with jobs in construction and industry. Large-scale farms eclipsed old-fashioned plantations. Vast hereditary lands splintered among generations of sons, and many aristocratic families left the country for cities, living beyond their means off sales of their remaining lands. Mobile labor has also reduced dependence on aristocratic families.

In Punjab, the country’s most populous province, and its most economically advanced, the number of national lawmakers from feudal families shrank to 25 percent in 2008 from 42 percent in 1970, according to a count conducted by Mubashir Hassan, a former finance minister, and The New York Times.

“Feudals are a dying breed,” said S. Akbar Zaidi, a Karachi-based fellow with the Carnegie Foundation. “They have no power outside the walls of their castles.”


In yet another confirmation that Pakistani Muslims are much better off than Indian Muslims, the World Bank data has revealed that $5 billion were remitted by Pakistanis to help their Indian Muslim relatives in 2015 alone. Such remittances are used to build homes, educate children, pay for health care or girls' weddings. This flow will have to increase in the future given the Modi government policies of Hinduization that areadversely impacting Indian Muslims by worsening the depth of their deprivations.

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Haq's Musings: Pakistanis Sent $5 Billion to Relatives in India in 2015
 
Its not possible, do you really think their are more pakistani relatives in india then Indians in UK?
 
Why would someone sends money to india, indian corruption money is itself sent out of india

If you live in Karachi you can tell many of these Altafis only came for money hence why they do not feel inhibitions to engage in crime and extortion economy. Each of them is sheltering further few illegals working as labourers in Korangi and Orangi industria areas...all this money eventually has to find a way to India...there are around 0.5 Million illegal Indians in Karachi..
 
My family sends money to IoK all the time - source of remittances mostly come from Punjab as those Kashmiris who fled IoK into Northern Punjab later on became very successful - our Prime Minister is one.

Very true and priceless statement..
 
well i know some of these people who send money to their relatives in India and they also visit them..

most of them are from Tharparkar district of Sindh. and they are businessmen, they have their own shops in Mirpur khas, Hyderabad, Karachi, Nawabshah, sukkur, sanghar
 
well i know some of these people who send money to their relatives in India and they also visit them..

most of them are from Tharparkar district of Sindh. and they are businessmen, they have their own shops in Mirpur khas, Hyderabad, Karachi, Nawabshah, sukkur, sanghar

It's mainly Mohajirs and their children in urban Sindh who send money to help out their relatives in need in India. But there are also people from India's Punjab and Indian occupied Kashmir now living in Pakistani Punjab who do it as well.
 
I think Pakistanis are investing in Indian capital markets and real estate markets through their relatives in India. $5 billion is too large an amount to be considered a help by Pakistanis to their relatives in India. India should take these matters seriously.

It's mainly Mohajirs and their children in urban Sindh who send money to help out their relatives in need in India. But there are also people from India's Punjab and Indian occupied Kashmir now living in Pakistani Punjab who do it as well.

$5 billion is too large an amount to be considered help. Pakistan expat remittance is pittance as compared to this amount. This is a serious matter.
 
Ritualistic cherry picking debunked by OP's own quoted sources

Why Does the World Bank Say Pakistanis Sent $5 billion to India Last Year? - India Real Time - WSJ

But if World Bank's assumption is correct, apparently the Mujahir community in Pakistan is indirectly sending India approx 2 INS Vikramadityas every year.

People in Pakistan sent almost $5 billion to India last year, according to World Bank estimates, making it one of the largest sources of remittances to the world’s second-most-populous country.

The number is astonishingly high considering direct remittances between the rival countries are highly restricted.

What makes the estimate more incredible is that the World Bank says it happens regularly and the amount sent to India is going up.

Those living in Pakistan sent $4.90 billion to India last year, $4.79 billion the previous year and $4.67 billion the year before that, according to the World Bank.

Indian globe-trotters aren’t piling into Pakistan to work on code or construction, in fact only a few thousand Indians go to work in Pakistan each year. The Reserve Bank of India estimates that only around $1 million was remitted to India from Pakistan through official channels in the year ended March 2015.

So what is going on?

The answer is part history and part mystery,
says Dilip Ratha, a lead economist at the World Bank and a manager of its migration and remittances development prospects group, which helped come up with the numbers.

The origins of all the money buzzing around the globe are hard to trace. Remittances may go through more than one country before reaching their destination and when money is transferred, it is recorded as if it was sent from the country where the intermediary bank is headquartered. So, for example, a transfer by Citigroup Inc. customer from Milan to Mumbai would be recorded as dollars moving from the U.S.

To try to trace the source of the $72 billion in remittances to India last year, the World Bank can only make an educated guess.

“It’s an inexact science,” Mr. Ratha said. “The bilateral remittances are basically made up according to assumptions.”


The World Bank has built a model that uses the population and origins of immigrants, average incomes and cost of living in each country to estimate how remittances flow.

Pakistan is home to more than 1.4 million people who were born in India. However, these immigrants are not your traditional non-resident Indians. They are a remnant of partition when colonial India was split and millions of people moved as they picked a country or were kicked out and displaced by violence.

The World Bank attributes a large slice of India’s annual remittance income to Pakistan because there is such a large group of India-born citizens there. The money also flows the other way, according to the bank’s model, as there are around 1.1 million Pakistan-born people living in India. The World Bank estimates Pakistan received remittances of more than $2 billion from India.


Some readers of The Wall Street Journal who first saw these numbers in a story titled“The Difference Between Indian and Chinese Migrants,” were shocked, skeptical and scared. The amounts had to be a mistake, some said in comments, or proof that money is being sent to finance terrorism or organized crime in India.

Mr. Ratha still stands by the bank’s best guess and says the origin of the cash is much less sinister.

The billions of dollars flying back and forth between the two countries are from the same place as the rest of the world’s remittances: family and friends supporting each other across borders.

There are literally millions of family connections between the two countries and millions of reasons a person in Pakistan might find a way to get money to relatives in India. The money could be sent for a brother in need, a cousin’s wedding, an uncle’s funeral or even to help educate a niece.

Despite the animosity between the two countries, as well as the rules, regulations and restrictions, family and finance finds a way.

Sometimes that means using informal avenues like the hawala money transfer systemor arranging for the money to be sent via a different country. Sometimes it means an envelope of cash carried by a friend traveling to India.

“These are two big economies right next to each other. The money must be flowing,” Mr. Ratha said. “That number we put out could even be an underestimation.”
 
If this is really true...Thank You Pakistan....We welcome all sources who sends money and do investment in our country...Even if it is from Pakistan...
 
Ritualistic cherry picking debunked by OP's own quoted sources

Why Does the World Bank Say Pakistanis Sent $5 billion to India Last Year? - India Real Time - WSJ

But if World Bank's assumption is correct, apparently the Mujahir community in Pakistan is indirectly sending India approx 2 INS Vikramadityas every year.

Pakistan whole oversea remittance is $ 8 billion compared to Pakistanis sending $ 5 billion to India alone. I am sure Pakistanis are investing in India through their relatives. Moreover, surprisingly the money cannot be traced exactly and uses not ascertained. This can give Pakistani based terror organizations an channel to fund terror activities
 
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