The Asian Development Bank (ADB) has recognized remittances as a critical potential pillar for Pakistan’s economy.
Moreover, a recent ADB blog report highlights that remittances have become an essential part of Pakistan’s economy, accounting for 10% of the GDP.
In addition, the report indicates that remittances to Pakistan surged by 19.8% during the COVID-19 pandemic, reaching a record $31.1 billion, highlighting their importance as a key source of foreign exchange and a tool for alleviating poverty.
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The ADB stressed the importance of Pakistan providing more incentives to overseas Pakistanis to boost remittance inflows. Aligning fiscal and economic policies could further optimize these funds to tackle economic challenges, lower the current account deficit, and support vital sectors such as infrastructure, health, and education.
Additionally, the report also suggests that with the right policy measures, remittances could be turned into productive investments, fostering economic growth and enhancing overall productivity.
Furthermore, remittances are viewed not only as a safety net during crises but also as a potential driver of sustainable development.
