Remittances of Pakistanis to increase by 10pc in FY 2016-17
ISLAMABAD: The flow of remittances of Pakistanis working in KSA and UAE are expected to further increase by 10 percent in FY 2016-17, according to a report by Khaleej Times.
It also added that Pakistani expatriates sent a record high remittance of $19.9 billion in the FY-2015-16, largely because of the contribution made by those working in the UAE and Saudi Arabia. The remittances were then said to have even topped the government-set target of $19 billion.
Pakistan will be depending, at least partially, on its overseas workers’ remittances, foreign investment as well as aid inflows in the current fiscal year, the report added. The current interest rate of 5.75 percent–the lowest in 43 years–is also said to prevail across the year. Although a slight increase in the current account deficit might occur on the accounts of higher expected non-oil imports, a positive growth in the overseas workers’ remittances will probably keep it at manageable levels.
Meanwhile, substantial bilateral and multilateral project loans in the financial account will also help maintain an overall surplus in the balance of payments. An increased foreign portfolio investment, backed by the re-classification and up-gradation of the Pakistani Stock Market in the Emerging Markets Index of New York-based MSCI, is likely to further add to this surplus.
According to the new Monetary Policy, announced by the State Bank chief, Pakistan Stock Market Index KSE-100 increased to a historic high of 39,528 points, which reflected gains of 377 points, or 0.96 percent, previous week–which ended on July 29.
This stock market boom, already witnessing a growing and an enlarged inflow of investment in Pakistani shares, has also raised the PSX to “No. 1 in Asia” with the highest dividend rate, on most portfolio investments in Pakistan. The present up-tick in the economy also led to very high dividends in almost all sectors of business and the economy. The highest dividend-yielding companies are also led by heavy-weights, which include banks, financial institutions, cement, fertilizers, energy, oil and gas exploration.
SBP also projected that Pakistan’s economic growth is set to further increase in 2016-17. The impetus is likely to arise from the continuation of the same positive factors of 2015-16, which included an increased investment under the Pakistan Special Development Plan, the $46 billion investment in Pakistan under the China-Pakistan Economic Corridor (CPEC), an improved energy availability to the industry to regain lost industrial output and a GDP growth of around two percent annually, healthy private sector credit uptake as well as an improving law and order situation and the successes in the ongoing war against terrorism.