Pakistan, with a population of about 225.2 million people, is a developing country. Pakistan’s economy is the world’s 23rd largest in terms of purchasing power parity and the 40th largest in terms of nominal gross domestic product. Agriculture, textile industry, and services are the mainstays of Pakistan’s semi-industrialized economy. However, in recent years, the country has enjoyed remarkable economic growth, owing primarily to remittances from Pakistani expatriates living and working overseas.
The Pakistani diaspora refers to Pakistani citizens who have migrated to other countries. According to the UN Department of Economic and Social Affairs, 11 million Pakistani nationals living abroad. That is roughly 7% of Pakistan’s total population! Of these 11 million people, approximately 2.7 million are working and remitting foreign exchange back to Pakistan. In 2021, these remittances amounted to a staggering $33 billion.
Overseas Pakistanis are, therefore, a vital source of revenue for the country and are often referred to as the “economic army” of Pakistan. This blog post will look at why overseas Pakistanis are such an essential part of the economy.
Why Do Overseas Pakistanis Send Money Home?
There are several reasons why overseas Pakistanis send money back home to their families and friends. For many, it is simply a way to support loved ones financially; according to Pew Research Center, around two-thirds of those who send money home do so. Others may send money back to invest in businesses or property or help pay for education expenses such as tuition fees or school uniforms.
In some cases, money transfers may help cover unexpected costs such as medical emergencies or funeral expenses. Whatever the reason for sending money home, there is no doubt that remittances make a valuable contribution to the Pakistani economy and society.
Reasons for the high level of remittances from Overseas Pakistanis
There are several reasons for the high remittances from Pakistani nationals living abroad. At the outset, a large pool of skilled labor is available overseas. This is because many Pakistanis have received higher education in Western countries. As a result, they can find well-paying jobs in countries like the United States, Canada, and the United Kingdom.
Furthermore, the current political and economic situation in Pakistan is unstable. This has led many educated and skilled Pakistanis to seek opportunities abroad. Lastly, many overseas Pakistanis have family members who rely on them for financial support. These factors all contribute to the high level of remittances from Overseas Pakistanis.
The impact of Overseas Pakistanis on the economy
The inflow of foreign exchange through remittances has positively impacted Pakistan’s economy. It has helped boost GDP growth, reduce poverty, and create new jobs. In addition, Overseas Pakistanis are essential in promoting investment in Pakistan. They do this by investing their own money in businesses back home or enticing friends and family members to invest in Pakistani businesses.
Overseas Pakistanis play a significant role in the economy with their high remittances. They are an essential source of revenue for the country and help to boost GDP growth, reduce poverty levels, and create new jobs. In addition, Overseas Pakistanis are essential in promoting investment in Pakistan. As stated, foreign Pakistanis have significantly contributed to Pakistan’s different businesses. They remain at the forefront of investment in various housing and commercial schemes in Pakistan.
Likewise, they are ahead of the curve in investing in real estate programs supported by the “Overseas Pakistanis Foundation” (OPF). Special offers are made to overseas residents in exchange for their residence or investment. They have numerous investment opportunities with the Hashi Group of Companies.
In the heart of Bahria town, Rawalpindi, Hashi GoC develops amazingly and highly profitable real estate developments such as The Hash Mall and Hash Residency. Overseas Pakistanis can invest in these residential and commercial projects and get protracted benefits. Call us right now at 0335-5551541 for more details!