Pakistan is expected to receive \$38 billion in remittances this fiscal year (FY25), but when it comes to how much each overseas Pakistani sends home, the figures tell a different story.
According to a new report by the Policy Research and Advisory Council (PRAC), while the overall money coming in from abroad has grown steadily over the last decade, the amount sent by each individual expatriate is still far behind what people send in other countries.
The report shows that in 2023, the average remittance per Pakistani living overseas was just \$2,529. This is much lower compared to countries like the Philippines, where the average was \$16,780, or Thailand at \$9,703. Even India, China, and Mexico send more per person, with averages of \$3,906, \$4,626, and \$5,914 respectively.
Although the total inflow of remittances is set to reach \$38 billion this year, PRAC warns that the growth remains fragile. The country faces several deep-rooted problems such as an export sector that relies mostly on textiles, a growing trade deficit, rising imports of consumer goods, a falling rupee, and only modest gains from remittances per person.
The government has introduced measures like the Roshan Digital Account (RDA) and Naya Pakistan Certificates (NPCs) to attract more money from overseas Pakistanis and foreign investors. These initiatives have had some success, but the report points out that most of this money has gone into real estate rather than industries or farming, limiting wider economic benefits.
To turn things around, PRAC recommends making changes such as offering better returns on investment certificates, reducing the fees involved in sending remittances, and encouraging the use of RDA funds in special economic zones and agro-processing industries.
