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What affects Pakistan’s remittance inflows?
The inflows from Western economies has grown substantially: remittances for June-December
Remittances to Pakistan have remained over $2 billion for seven consecutive months despite the Covid-related global economic slowdown. Last week, we discussed a possible reason for this growth: the increasing popularity of formal money transfer channels among Pakistani migrants. This explanation is particularly valid in case of Pakistani workers residing in GCC countries.
Another reason which may help better understand the increase in remittances from Western countries is the increase in investments by overseas Pakistanis. The inflows from Western economies has grown substantially: remittances for June-December from the United States grew 27%, from the UK by 48%, and from EU countries by 56%. Prolonged lockdowns and related economic weakness of these countries made investing in developing countries like Pakistan an attractive propositi ....

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