‘Pakistan’s foreign remittances to further grow because of the government’s focus on digitization’, Moody’s predicts
According to the World Bank, Pakistan ranks 7th on the list of the world’s largest recipients of remittances.
A recent report by Moody’s Ratings Agency has revealed that Pakistan has witnessed a noticeable increase in foreign remittances in the recent years.
According to the World Bank, Pakistan ranks 7th on the list of the world’s largest recipients of remittances. The inflow reached $21 billion, making up 6.8% of the country’s GDP in 2018-19.
Between the years 2012 to 2019, remittances to Pakistan increased by 9%. Majority of the inflow came from Gulf Cooperation Council countries, which made up 54% of the total remittances in 2019. The United States, Malaysia and the United Kingdom contributed 16%, 7% and 16% respectively.
The growth in remittances helped Pakistani banks by providing them with a stable and low-cost deposit base. However, Moody’s expects further growth because of the PTI-led government’s focus on digitization and increasing remittances through proper banking channels.
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