World Bank Report: Pakistan’s remittances surged by 17% in 2020

This was due to the COVID-19 pandemic that forced nations worldwide to lock down their economies and send migrant workers back home to their countries of origin.

(Faisal Khan)

Remittance flow into Pakistan grew by about 17% in 2020, defying the clouded projections due to the global Covid-19 pandemic.

This was revealed in the latest Migration & Development Brief published by the World Bank.

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According to the report, the home remittances from Pakistanis working abroad last year were increased than the 5.2% surge in inflows to other South Asian countries.

Previously, the bank had forecast a significant decline in remittances to Pakistan and the rest of the countries in the region.

This was due to the COVID-19 pandemic that forced nations worldwide to lock down their economies and send migrant workers back home to their countries of origin.

The most significant growth in remittances flow into Pakistan came primarily from the Kingdom of Saudi Arabia (KSA), followed by the European Union (EU) nation-states and the United Arab Emirates (UAE).

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The decline in recorded global remittance flows last year was smaller than the one – 4.8% – during the 2009 global financial crisis.

It was also far lower than the fall in foreign direct investment (FDI) flows to low- and middle-income nations, which, excluding flow to China, fell by over 30pc in 2020.

As a result, remittance flows to low- and middle-income countries surpassed the FDI of $25 billion and overseas development assistance of $179 billion.

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