Home remittance: The role of exchange company in Pakistan's economy.

Byline: Ashley

Pakistan is a fast-growing developing country and a member of the WTO, Organization of the Islamic Conference, Group of 77, Non-Aligned Movement, Shanghai Cooperation Organization and Commonwealth.

Pakistan's economy is an emerging market in Asia. Agriculture is the pillar industry of Pakistan. Rice, wheat, sugar cane, cotton, sugar and other crops are the main income of the people. There are much natural resource such as natural gas, oil, ore, etc. However, compared with the dominant countries, Pakistan's heavy industry development is weak. Then, what is the most reliable foreign exchange resource for Pakistan? The only one answer is home remittance.

What is the home remittance of Pakistan?

Home remittance is the transfer of money by a migrant worker to his/her family/loved ones back in Pakistan, through legal banking channels. Millions of people leave their original country to seek better life and larger economic opportunities. For many countries, transferred funds from citizens who work abroad is the lifeline of development. When immigrants send their income to support his or her family in the form of cash or goods, which is called home or immigrant remittance.

For some countries, home remittance is the main content of the national economy. For example, data from the World Bank shows that 31.8% of Nepal's GDP in 2015 came from home remittance. Some countries close to the United States also heavily rely on remittances from overseas workers. Remittances accounted for 25% of Haiti's GDP in 2015, 18% of Honduras' GDP, and nearly 17% of El Salvador's GDP. Globally, remittances have soared since 2000, but they still account for less than 1% of global GDP. But for families who rely on these funds, remittances are indispensable.

Gilbert Hongbo, president of the International Fund for Agricultural Development, once said that "the purpose of home remittance is to send money to family but to affect people's life. The $200 or $300 that each immigrant sends to his family accounts for about 60% of family's income, which has a great influence on the life of his family and the community in which he or she lives."

Home remittance day

June 16th is the International Home Remittance Day, which aims to affirm migrant workers who make great contribution to the happiness of their domestic families and the sustainable development of their country.

The influence of home remittance

National level impact

Remittances can encourage developed countries...