Today DAWN editorial about falling remittances
ANY which way one looks at it, the steep fall in remittances received in the month of July is worrying. The inflows this year dropped by 20pc compared to July last year. Some attribute this drop to a post-Eid dip, but no such dip was seen in previous years, and considering the numbers are comparing the July data from last year and this year, any such fall would be accounted for in both.
Declines are broad-based, happening in countries ranging from the US to Saudi Arabia, the UAE and other GCC nations.
All three sources of foreign exchange inflows for Pakistan are showing similar trends, with FDI and exports also falling consistently. The State Bank and the IMF have, in their own way, warned about the vulnerabilities in Pakistan’s external sector.
The strength of the external sector is built primarily on exports, FDI and remittances. Once all three of these indicators show sustained declines — and going by recent data an accelerating decline — there are grounds for serious concern about the underlying health of the economy. The government’s growth story is now at stake. Managing an economy is about more than just the GDP growth rate and foreign exchange reserves. If the government has no ideas on how to arrest or reverse this trend, it is laying a very poor foundation upon which to build its legacy.
Source DAWN NEWS
SIM replied on Friday, August 26, 2016 02:56 PM PST
Thanks to Sir Ishaq Dar. |
Ahmad786® replied on Friday, August 26, 2016 03:52 PM PST
Those who were justifying these taxes by being loyal to government should see how more taxation impacts the economy. |
AHMAD HASSAN® replied on Friday, August 26, 2016 04:08 PM PST
Taxes aren't single reason of current remitance decrease. We have to look others factors too. 1. Drop of oil prices ( hopefully prices will be recovered in next year). 2. Job cuts. Some countries are going to put limits on outbound remitance too as well as salary taxes. One wouldn't be able to send more than monthly salary in one month. More than that am afraid from NS & Ishaq Dar habits to repeat all mistakes & pray that they will not freez FC accounts. |
Badar replied on Friday, August 26, 2016 06:06 PM PST
Sir Ishaq Dar is genius. |
Khan form USA replied on Saturday, August 27, 2016 12:19 AM PST
I don't think it has anything to do with Tex reform!
There is a problem with oil prices. Which has effected a lot of Pakistanis in the middle east. As we know, many many focus not been getting paid for a while. So they can't send any remittance.
Second largest remittance was coming from USA. After 9/11 most of the Oversees Pakistani in the USA started to buying properties in Pakistan. Which now they realize that they need this money in the USA. They are getting closer to retirement and they Children are growing. They definitely can use this money here in the USA. |
KK® replied on Saturday, August 27, 2016 01:51 PM PST
the main reason is immediate decision and implementation of such rubbish decisions by our genius ishaq dar sb... whenever such big decisions are made they are publicized and time given for implementation....like VAT is going to implement in GCC from 2018 they have made decision informed well and now implement not overnight but on time given. but who will make these jerks understand as they have their own intersts |