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Reality of Pakistan’s Economic Situation is hitting home
Global Village Space
Recent months the government is under pressure on the large foreign loans it is taking out and questions of how the country will pay these back have arisen again and again. Now the latest numbers have come out on remittances and they paint an even scarier picture.
The State Bank of Pakistan (SBP) reported on Friday that remittances fell 2.5 percent to $12.36 billion in the last eight months (July-Feb) against an increase of 5.76 percent in the same period a year ago when they were $12.68 billion.
The SBP report shows remittances declining month on month for the past eight months. Most of this decline is coming from GCC economies as they have seen declining growth as oil prices have collapsed the last couple of years. Currently, Brent oil is currently around $51, it reached lows of $28 at the beginning of 2016, after remaining at levels over $100 since 2012.
Read more: Pakistan’s expected debt to be $110 billion by 2020
The GCC economies are not just hit by excessive supply of petrochemicals in the global market but also war in Yemen and the tense near-war situation in the Arabian Gulf with Tehran.
Saudi Arabia is the single largest country that sends back remittances to Pakistan and has the largest number of Pakistani overseas workers. The last 8 months has seen remittance inflows from Saudi Arabia decline 6.8 percent to $3.57bn. On the other hand, in the same period last year remittances from Saudi Arabia rose 7.8 percent.
Because of declining growth, Saudi Arabia has tightened its labor rules for overseas workers so as to provide jobs for local people. Over 2million Pakistanis reside in Saudi Arabia. But, under the stricter labor laws being implemented in the country, over 40,000 Pakistanis have been deported from Saudi Arabia past four months alone.
According to the Saudi Gazette, they were deported for “violating the rules of residence and work”. A few months ago, the Federal Investigation Agency (FIA) had released a report, “Labor Migration from Pakistan: 2015 Status Report” showing that 131,643 Pakistani migrants were deported from Saudi Arabia between 2012-15.
Read Full Story: Reality of Pakistan’s Economic Situation is hitting home
Global Village Space
Recent months the government is under pressure on the large foreign loans it is taking out and questions of how the country will pay these back have arisen again and again. Now the latest numbers have come out on remittances and they paint an even scarier picture.
The State Bank of Pakistan (SBP) reported on Friday that remittances fell 2.5 percent to $12.36 billion in the last eight months (July-Feb) against an increase of 5.76 percent in the same period a year ago when they were $12.68 billion.
The SBP report shows remittances declining month on month for the past eight months. Most of this decline is coming from GCC economies as they have seen declining growth as oil prices have collapsed the last couple of years. Currently, Brent oil is currently around $51, it reached lows of $28 at the beginning of 2016, after remaining at levels over $100 since 2012.
Read more: Pakistan’s expected debt to be $110 billion by 2020
The GCC economies are not just hit by excessive supply of petrochemicals in the global market but also war in Yemen and the tense near-war situation in the Arabian Gulf with Tehran.
Saudi Arabia is the single largest country that sends back remittances to Pakistan and has the largest number of Pakistani overseas workers. The last 8 months has seen remittance inflows from Saudi Arabia decline 6.8 percent to $3.57bn. On the other hand, in the same period last year remittances from Saudi Arabia rose 7.8 percent.
Because of declining growth, Saudi Arabia has tightened its labor rules for overseas workers so as to provide jobs for local people. Over 2million Pakistanis reside in Saudi Arabia. But, under the stricter labor laws being implemented in the country, over 40,000 Pakistanis have been deported from Saudi Arabia past four months alone.
According to the Saudi Gazette, they were deported for “violating the rules of residence and work”. A few months ago, the Federal Investigation Agency (FIA) had released a report, “Labor Migration from Pakistan: 2015 Status Report” showing that 131,643 Pakistani migrants were deported from Saudi Arabia between 2012-15.
Read Full Story: Reality of Pakistan’s Economic Situation is hitting home
