Remittance diversity and economic stability
The just-ended financial year (FY21) witnessed a record increase in home remittances, which crossed $29 billion for the first time in the country’s history. The 27% year-on-year growth is the highest the country has seen since FY04. Since the 1970s oil boom, when a significant number of Pakistanis began working in the Gulf, remittances from overseas Pakistanis have regularly covered a major portion of Pakistan’s trade gap, as the country’s exports have rarely exceeded half of the amount of goods and services imported. The country heavily relies on these inflows to manage its chronic balance of payment difficulties.