Pakistan has done really well in getting a lot of money from people living in other countries, known as remittances. In the last five years, from 2017 to 2022, Pakistan got an impressive $150 billion. This makes Pakistan the fifth-highest country in the world to receive remittances in 2022, according to information shared at the 2nd Albaraka Regional Conference on remittances.
The Saleh Kamel Islamic Economy Database tells us that in 2022 alone, Pakistan got $29.9 billion in remittances. This shows that a lot of money is sent by Pakistanis living abroad to their families back home, making Pakistan one of the top countries for receiving money from overseas.
The money sent as remittances is really important for Pakistan’s economy. In fact, it makes up a big part, around 33%, of all the things Pakistan buys from other countries. This special position makes Pakistan the second-highest country among the Organization of Islamic Cooperation (OIC) nations and the fifth highest in the world for receiving remittances in 2022.
Understanding how crucial it is, the AlBaraka Forum for Islamic Economy, along with the Islamic Chamber of Commerce and Development (ICCD), organized a conference. This meeting aimed to talk about how governments and banks can work together to make sure that money sent as remittances is done through legal and secure channels.
Yousef Khalawi, who is in charge of the AlBaraka Forum for Islamic Economy, pointed out the role of Islamic banks in encouraging people who get remittances to invest in local businesses and programs that help the community. This shows that remittances have a bigger impact than just providing money right away.
During the conference, experts and leaders, including those from the Organization of Islamic Cooperation (OIC) and the State Bank of Pakistan (SBP), talked about the best ways to make rules and plans for remittances. The main goal was to give clear guidelines and ideas for the future of remittances.
Throughout the conference, everyone agreed that we need new and smart plans to make remittances have an even better effect on Pakistan’s economy. The event brought together important people to discuss how Islamic finance tools can help reach Sustainable Development Goals (SDGs) and make remittance plans in line with long-term development goals.
Pakistan getting a lot of money through remittances shows that the country is strong economically, and people living abroad trust their homeland. As Pakistan continues to be a top destination for remittances, it’s important that everyone works together and invests in ways that not only help right away but also make Pakistan’s economy grow in the long run.
