IMF study says that Pakistani Remittances will continue to flow - August 1, 2011

A recent International Monetary Fund (IMF) study observes that remittance flows to Pakistan are likely to continue and will be helpful in offsetting the impact of 2010 flash floods which caused huge devastation especially to the agriculture sector.

This increase in remittances can be explained only partly by an increase in worker immigration and the economic boom in Gulf Cooperation Council (GCC) countries. This study is of the view that while remittances have become a major source of inflows for Pakistan, there are no signs of reversal and Pakistan will continue to experience increase in remittances despite the current economic downslide in GCC countries.

While other countries of the region are experiencing decreases in remittances; remittances for Pakistan have rather increased and this resilience is partly explained by high skill level of workers. However, it is important to remember that if composition of migrating workforce continues to tilt in favor of skilled workers, Pakistan may experience the negative impacts of “brain-drain” where these high remittances may be offset by problems of brain drain.

Source: Published by The International Monetary Fund, August 01st, 2011