Page 3 - Remittances

Pak lost $4 bn remittances due to high exchange rates of illegal channels

Pakistan lost over USD 4 billion in remittances sent by expatriates to illegal channels in the current fiscal year, much higher than the amount the cash-strapped government struggled to secure from the IMF as a bailout. Data released by the State Bank of Pakistan (SBP), the country's central bank, on Monday showed that the month-on-month remittances increased slightly by 4 per cent to USD 2.183 billion in June, while it witnessed a 22 per cent decline when compared with the USD 2.8 billion the country received in June 2022. The country received a total of USD 27.024 billion in remittances during FY23, against a record USD 31.278 billion in FY22, a decline of 13.6 or USD 4.254 billion, the Dawn newspaper reported. The central bank did not offer any reason for the decline of the remittances, but analysts said the government's effort to keep the dollar at lower than actual rates hit the inflows through banking channels. The government tried to maintain the dollar-rupee parity at Rs 22

Singapore's Instarem sees huge inflow of diaspora remittances into India

Singapore-headquartered Instarem sees huge inbound flow of remittances into India, citing the World Bank projection that money sent home by the Indian diaspora will reach USD 100 billion a year in the coming year or so, up from USD 82 billion received last year. India is a huge inbound market for us, and we have big operations in Mumbai, which is our main technology and product centre, Yogesh Sangle, Global Head of Instarem, told PTI on Wednesday on the increase in monies sent home regularly by the Indian diaspora. Instarem has also grown its offices in Bangalore and Chennai, to leverage the talent in India, said Sangle who pointed out that the estimated USD 82 billion received in India in 2022 was the largest remittance flow in the world. The app-based remittance company is setting up operations in Japan to serve Small and Medium Enterprises (SMEs) and Consumers, and has recently launched a SME-support product in Indonesia. COVID-19 had created an opportunity to service the ...

Developed world slowdown to apply brakes on India's remittance inflows

Growth in remittance flows into India to decelerate to 0.2% in 2023, from 24% in 2023: World Bank

Pak lost $3.7 bn as expatriates used unofficial channels for remittances

Pakistan lost at least USD 3.7 billion in the first 11 months of the current fiscal year as expatriates used unofficial channels for remittances due to the huge exchange rate gap, the cash-strapped country's central bank has said. The Pakistani rupee has been in a state of freefall for most of the year due to pressure on the depleting foreign exchange reserves, creating a difference between the inter-bank and private money market exchange rates. Data released by the State Bank of Pakistan (SBP) on Tuesday showed that the country lost USD 3.7 billion in remittances during the first 11 months of FY23 mainly due to a widening exchange rate gap. Overseas Pakistanis who sent money to their relatives and families apparently resorted to unofficial channels to transfer funds, causing a loss to the official remittances that majorly contribute to helping support the balance of payments, the Dawn newspaper reported. It said the remittances sent by Pakistani expatriates dipped month-on-month b

Restrictions on foreign spends erode Brand India

Any nation that restrains its citizens from investing or spending money overseas will face difficulty in becoming a superpower

Indians sent $27.14 bn abroad under LRS in FY23, up nearly 40% YoY

Reflecting buoyancy in travel and spending on relatives, outward remittances surged substantially for the second year on the trot

Business trips to be exempted from LRS changes, says finance ministry

Any expense above this ceiling will require RBI's permission

Goldman Sachs sees remittances keeping CAD lower in 2023: Report

Despite an improved external situation, Goldman expects rupee to underperform Asian peers

Turning the clock back

New rules on remittances may rein in legal transfers

With $100 bn in 2022, India biggest recipient of money from overseas

Highly-skilled Indian migrants from the US, UK and Australia were sending more money home, helped by job support programs during Covid-19 restrictions

Maintain proper documents proving source of funds remitted abroad

Have transparent reasons for each transfer and use reputable service providers in order to avoid scrunity

Remittances sent by Pakistani expats reach $2.5 bn in March: central bank

Pakistani expatriates sent home USD 2.5 billion in remittances in March, a seven-month high, the State Bank of Pakistan said on Monday, as the cash-strapped country tried to avert a major economic crisis. The data from the central bank showed that the inflow of workers' remittances was 27 per cent higher compared to February. However, it was 11 per cent lower compared to March 2022, Geo News reported. Pakistan, currently tackling a major economic crisis, is grappling with high external debt, a weak local currency and dwindling foreign exchange reserves. According to the report, historical trends suggest that Pakistanis living abroad sent record-high remittances ahead of Eid festivals each year. According to the report, inflows remained comparatively high as non-resident Pakistanis used legal channels to send funds to their family, given the shrinking gap between rates in the interbank and the open market. Pakistani expatriates in Saudi Arabia topped the list of remittances by send

Budget 2023: Understanding 20% TCS on foreign remittance transactions

Budget 2023: Earlier, a 5 per cent tax collected at source was levied on foreign remittances

Watch out for mark-up on the exchange rate when remitting money

Go with a player that states both the exchange rate and the transaction fee transparently

Discussions for next G20 Financial Inclusion Action Plan kicked off

The members will decide on the final priorities, but Sarkar said, the major ongoing priorities were digital financial inclusion and making finances more accessible to SMEs

Remittance cost for workers outside India may drop to 3% by 2027: Official

G20 leaders have attached a lot of importance to the high remittance cost for workers outside India, and efforts are underway to bring the rate down to an average of 3 per cent by 2027, a top official said on Sunday. At present, the remittance cost, on an average, stands at around 6 per cent of each transaction, he said. "Workers and labourers employed outside India have to bear a high remittance cost, and G20 leaders have attached a lot of significance to reduction of this rate. "The aim is to bring it down to an average of 3 per cent by 2027," said Chanchal Sarkar, Economic Advisor, Ministry of Finance, Department of Economic Affairs. Sarkar was speaking at a briefing ahead of the first Global Partnership for Financial Inclusion meeting of the G20, scheduled to be held in Kolkata from January 9-11. He said remittance cost will be one of the key topics of discussion at the three-day event, along with digital financial inclusion principles and finance availability for SMEs. Indi

India to receive record remittances but experts worry CAD will still widen

Of $90 billion remittances that India is expected to receive in 2022, only $27.4 billion has come in the first half of the year

Pakistan's remittances declined 4.8% in November, says central bank

State Bank of Pakistan says remittances sent by overseas Pakistani workers decreased 4.8% in November on a month-on-month basis

Remittance inflows in India to top $100 billion in 2022: World Bank brief

Remittance inflow pattern in India has undergone a structural shift from gulf countries to high-income countries in the past few years

In 2022, world-topping $100 billion in remittances have come to India

Remittance flows to India will rise 12 per cent to reach $100 billion this year, according to a World Bank report published on Wednesday