30 Aug 2023
Ever gazed upon a spider's web and noticed its intricate design and how each strand, no matter how distant, is connected to the core? Similarly, the heartstrings of overseas Pakistanis are deeply interwoven with their homeland, making them vital contributors to the nation's economy. But how can they optimise their support? When overseas Pakistanis make a money transfer to Pakistan, it benefits their families and the country in different ways. For many years, Pakistan's main source of foreign currency has been remittances from family or workers. These influxes have long been a major source of funding for the country's growing primary income and balancing its trade deficits. With a population of about 220 million and a prime location at the intersection of South, Central, and West Asia, Pakistan has the potential to develop into a key economic hub for the area.
Creating economic corridors, or designated geographic areas with cutting-edge infrastructure, facilities, and policies for trade and transportation that will promote economic activity both within the nation and with its neighbours, is one way to get there.
Infrastructure, industrial, and urban developments are all a part of economic corridors. If done right, these can be a rich source of opportunities and investments that will boost the economy, create jobs, and speed up the movement of people and goods.
Let’s briefly look at how overseas Pakistanis can contribute to the economic growth of Pakistan while staying abroad.
It's no secret the economy of Pakistan has faced its share of challenges over the years. From fluctuating inflation rates to trade deficits, the path has been rough. Yet, the emerald shines brightest when polished. What's the role of Pakistan's diaspora in this polish?
Let's set the stage. Imagine a family where a member goes abroad for a better future. They don't forget their roots and regularly send money back home. This is the narrative of countless Pakistani families. These remittances sent from abroad help run several households, create job opportunities through investments in various sectors, and aid in the country’s economic progress.
Remittances have become a lifeblood of the economy. Think of them as a steady stream of water nurturing the roots of a parched plant. Over the years, these funds have not just supported families but bolstered foreign exchange reserves. Over 9 million Pakistanis live in various countries, most of whom send money to Pakistan to extend financial support back home, which in turn aids the country’s foreign exchange reserves. Pakistan received $29 billion in FY21, $31 billion in FY22, and almost $27 billion in FY23, which have contributed significantly to making Pakistan’s foreign reserves reach $13.6 billion.
These remittances sent from overseas can make substantial differences and positive impacts on Pakistani’s economic progress. Let’s delve into how these goals can be achieved through remittances.
With a strong economy and a large, young, and expanding population, Pakistan now has the chance to address structural bottlenecks that are preventing it from achieving its enormous potential. However, the country's development achievements have not kept up with its income growth, necessitating significant public and private investments to fulfil the population's aspirations and raise the level of competitiveness in the region.
The ratio of investment to GDP is still very low at 15%, making it one of the lowest in the world and roughly half of the average for South Asia at 30%. This indicates that insufficient infrastructure is being built, people do not have access to enough energy and water, and the standard of hospitals and schools is not at its highest. Yet another cause for concern is that private investment as a percentage of GDP has been falling, and in FY2014–15, it was less than 10%. A number of factors cause this low investment level. As a Pakistani expat, you must try ACE Money Transfer’s services to send money to Pakistan.
Pakistanis living abroad have a big financial stake in helping their nation's struggling economy. Here are a few techniques they can use to do that:
Pakistanis living abroad can make sure that their remittances are sent through authorised channels, such as banks and money transfer businesses, as opposed to unofficial channels. The money is tracked and can support the nation's economy when it is transferred through official channels.
Pakistanis living abroad can invest in Pakistan by purchasing real estate, making business investments, or making donations to charitable organisations. Investing in Pakistan has the potential to boost economic development, create jobs, and advance the nation.
Small businesses in Pakistan can be helped by Pakistanis living abroad by offering capital, advice, or skills. Supporting small businesses, which form the foundation of the nation's economy, can help generate employment and promote economic expansion. To achieve these goals, overseas Pakistanis can instantly send money to Pakistan online to their loved ones via ACE’s trusted services and let them invest in various sectors on their behalf.
By spreading the good news and advancements about Pakistan to their friends and coworkers, Pakistanis living abroad can help their home nation's economy. As a result, the country may be able to draw in more foreign investment and foster a favourable reputation abroad. The ACE Money Transfer mobile app has made it easier for overseas to transfer money to Pakistan.
Pakistanis living abroad can support groups and people working to enhance their country's economic policies and governance by lending their support. They can participate in public discussions and public debates regarding the nation's economic problems.
For a number of reasons, the NIPs have been made easier by the creation of the Overseas Pakistanis Foundation (OPF). For Pakistanis living abroad, this platform offers a variety of ways to get support, both financially and in other ways. They can take advantage of many services provided by the massive platform currently operating in Pakistan by joining OPF.
Roshan's digital account has made it very convenient for Pakistanis living abroad to transfer money. Using this service developed by the State Bank of Pakistan, they can now pay their bills, transfer money, and send payments digitally from anywhere in Pakistan to anywhere in the world.
Pakistanis living abroad have access to various amenities and are appreciated for the assistance they have given the nation. Pakistan has made bold decisions in many areas, including money transfers to Pakistan and voting rights.
However, more needs to be done as Pakistanis living abroad face numerous obstacles when trying to remit money home and begin investing there. To immediately assist Pakistani nationals who are abroad, the government must improve the effectiveness and transparency of the current facilitation centres.
By sending money home through official channels, making investments, supporting start-up companies, promoting Pakistan's economy, and pushing for economic reforms, Pakistanis living abroad can ensure financial support for their nation's faltering economy. Overseas Pakistanis can significantly contribute to the nation's economic growth and development by banding together and taking collective action. The strength and potential of overseas Pakistanis are unparalleled. By strategically channelling their resources, they can play a pivotal role in elevating Pakistan's economy. In this regard, ACE Money Transfer is always leading, enabling overseas Pakistanis to make instant, secure, convenient, and cheap online money transfers to Pakistan from abroad.
How much do remittances contribute to Pakistan's GDP?
Remittances have consistently been a significant contributor, making up a noticeable portion of the GDP, with values varying yearly.
Is investing in Pakistan safe for overseas individuals?
With proper research and using official channels, it's relatively safe. It's always advisable to be cautious and informed.
How can one verify the authenticity of charitable organisations in Pakistan?
Check their registration, past work, and reviews, and always ensure they have a transparent financial system.
What sectors in Pakistan are ripe for investment?
Sectors like real estate, technology, agriculture, textiles, and tourism hold immense potential.
How does supporting education and health impact the economy?
By fostering a well-educated and healthy population, you're ensuring a productive workforce, which is vital for sustainable economic growth.