Compared to the overall growth of 8 percent in remittances in South Asia, the remittances into Pakistan grew by 26 percent during the year 2021, according to estimates from the World Bank\u2019s Migration and Development Brief.<\/p>\n
\u201cPakistan had another year of record remittances with growth at 26 percent and levels reaching $33 billion in 2021,\u201d says the report
\nreleased by WB.<\/p>\n
In addition to the common drivers, the government\u2019s \u2018Pakistan Remittance Initiative\u2019 to support transmission through formal channels attracted large inflows it says adding the Afghanistan\u2019s fragile situation emerged as an unexpected cause of remittances in 2021 intended for Afghan refugees in Pakistan as well as for families in Afghanistan.<\/p>\n
According to the report, overall remittances to South Asia likely grewaround 8 percent to $159 billion in 2021.<\/p>\n
Higher oil prices aided economic recovery and drove the spike in
\nremittances from the Gulf Cooperation Council (GCC) countries which
\nemploy over half of South Asia\u2019s migrants. Economic recovery and
\nstimulus programs in the United States also contributed to the growth.<\/p>\n
In India, remittances advanced by an estimated 4.6 percent in 2021 to
\nreach $87 billion, according to the report. Remittances are the dominant
\nsource of foreign exchange for the region, with receipts more than twice
\nas large as FDI in 2021.<\/p>\n
On remittance costs the report adds, South Asia had the lowest average
\ncosts of any world region at 4.6 percent. But sending money to South
\nAsia through official channels is expensive compared with informal
\nchannels which remain popular.<\/p>\n
Cost-reducing policies would create a win-win situation welcomed by
\nmigrants and South Asian governments alike.<\/p>\n
The report says, remittances to low- and middle-income countries are
\nprojected to have grown a strong 7.3 percent to reach $589 billion in
\n2021.<\/p>\n
This return to growth is more robust than earlier estimates and follows
\nthe resilience of flows in 2020 when remittances declined by only 1.7
\npercent despite a severe global recession due to COVID-19, according
\nMigration and Development Brief released.<\/p>\n
For a second consecutive year, remittance flows to low- and
\nmiddle-income countries (excluding China) are expected to surpass the
\nsum of foreign direct investment (FDI) and overseas development
\nassistance (ODA).<\/p>\n
This underscores the importance of remittances in providing a critical
\nlifeline by supporting household spending on essential items such as
\nfood, health, and education during periods of economic hardship in
\nmigrants\u2019 countries of origin.<\/p>\n
\u201cRemittance flows from migrants have greatly complemented government
\ncash transfer programs to support families suffering economic hardships
\nduring the COVID-19 crisis. Facilitating the flow of remittances to
\nprovide relief to strained household budgets should be a key component
\nof government policies to support a global recovery from the pandemic,\u201d
\nsaid Michal Rutkowski, World Bank Global Director for Social Protection
\nand Jobs.<\/p>\n
Factors contributing to the strong growth in remittance are migrants\u2019
\ndetermination to support their families in times of need, aided by
\neconomic recovery in Europe and the United States which in turn was
\nsupported by the fiscal stimulus and employment support programs.<\/p>\n
In the Gulf Cooperation Council (GCC) countries and Russia, the recovery
\nof outward remittances was also facilitated by stronger oil prices and
\nthe resulting pickup in economic activity.<\/p>\n
Remittances registered strong growth in most regions. Flows increased by
\n21.6 percent in Latin America and the Caribbean, 9.7 percent in Middle
\nEast and North Africa, 8 percent in South Asia, 6.2 percent in
\nSub-Saharan Africa, and 5.3 percent in Europe and Central Asia.<\/p>\n
In East Asia and the Pacific, remittances fell by 4 percent \u2013 though
\nexcluding China, remittances registered a gain of 1.4 percent in the
\nregion. In Latin America and the Caribbean, growth was exceptionally
\nstrong due to economic recovery in the United States and additional
\nfactors, including migrants\u2019 responses to natural disasters in their
\ncountries of origin and remittances sent from home countries to migrants
\nin transit.<\/p>\n
The cost of sending $200 across international borders continued to be
\ntoo high, averaging 6.4 percent of the amount transferred in the first
\nquarter of 2021, according to the World Bank\u2019s Remittance Prices
\nWorldwide Database.<\/p>\n
This is more than double the Sustainable Development Goal target of 3
\npercent by 2030. It is most expensive to send money to Sub-Saharan
\nAfrica (8 percent) and lowest in South Asia (4.6 percent). Data reveal
\nthat costs tend to be higher when remittances are sent through banks
\nthan through digital channels or through money transmitters offering
\ncash-to-cash services.<\/p>\n
\u201cThe immediate impact of the crisis on remittance flows was very deep.
\nThe surprising pace of recovery is welcome news. To keep remittances
\nflowing, especially through digital channels, providing access to bank
\naccounts for migrants and remittance service providers remains a key
\nrequirement. Policy responses also must continue to be inclusive of
\nmigrants especially in the areas of access to vaccines and protection
\nfrom underpayment,\u201d said Dilip Ratha, lead author of the Brief and head
\nof KNOMAD.<\/p>\n
Remittances are projected to continue to grow by 2.6 percent in 2022 in
\nline with global macroeconomic forecasts. A resurgence of COVID-19 cases
\nand reimposition of mobility restrictions poses the biggest downside
\nrisk to the outlook for global growth, employment and remittance flows
\nto developing countries.<\/p>\n
The rollback of fiscal stimulus and employment-support programs, as
\neconomies recover, may also dampen remittance flows, it adds.<\/p>\n","protected":false},"excerpt":{"rendered":"
Compared to the overall growth of 8 percent in remittances in South Asia, the remittances into Pakistan grew by 26 percent during the year 2021, according to estimates from the World Bank\u2019s Migration and Development Brief. \u201cPakistan had another year of record remittances with growth at 26 percent and levels reaching $33 billion in 2021,\u201d […]<\/p>\n","protected":false},"author":2,"featured_media":129534,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[20,367],"class_list":{"0":"post-228286","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world","8":"tag-pakistan","9":"tag-world-bank"},"yoast_head":"\n