ISLAMABAD, Aug 11, 2015 (BE2C2/MAMOSA Report) — Pakistanis based in foreign countries sent home $18.4 billion in 2014-15, which translates into a year-on-year increase of 16.5%.
Inflows from Saudi Arabia, where more than 2 million Pakistanis work, were the largest source of remittances last year as well as on month-to-month basis. In July this year, the remittance amounted to $474.4 million, up 4.4% from a year ago.
The overall share of remittances from the oil-rich GCC countries to Pakistan is over 62%, according to data released by the State Bank of Pakistan (SBP) on Monday.
Remittance by Pakistanis living in the kingdom continue to be the major chunk — more than 32 percent of the overall figure.
Many analysts fear remittances from these countries may dwindle going forward, as their governments begin to scale back infrastructure spending in the wake of a sharp fall in global oil prices, reported Express Tribune.
That may not really be the case in Saudi Arabia, said one business analyst.
On Monday, after an eight-year interlude, Saudi government bond sales came alive.
The program underlines King Salman’s resolve to maintain spending amid a collapse in oil prices, the country’s biggest revenue stream, reported Bloomberg News.
“Oil prices have given incentive for the government to issue bonds now,” Al-Sudairi, the Riyadh-based head of sell-side research at Alistithmar Capital, a unit of Saudi Investment Bank, told Bloomberg by phone on Sunday.
The debt sale “also shows the government’s confidence in its oil and development policies. We have so many infrastructure and energy projects that will need funding,” he said.