Falling remittances in crisis-ridden Pakistan amidst remittance boom in South Asia
Since January 2022, Pakistan’s economy has been struggling with a significant dip in its remittances, further aggravating its already distressed economic conditions. Given the developmental needs of the country and current inflationary pressure, a further 10 percent decrease in remittance flow in FY23, as per the World Bank’s report[1], is a severe blow to the nation’s economic health. Between 2022 and 2023, the remittances have plummeted by almost 16 percent[2]. To put it into absolute numbers, in FY23, remittances were reduced by $4.25 billion year-on-year.
The situation in Pakistan becomes even more concerning when we contrast it with the rising remittance flow in the South Asian region. As per the World Bank[3], in 2022, South Asia received remittances worth $176 billion, which ove...