Can Pakistani Diaspora Help in Pakistan's Development?

Nearly 5 million Pakistani emigrants make up the world's 7th largest disapora, according to the World Bank Factbook 2011. Adding the foreign-born children of these Pakistani emigres to the tally pushes the total figure up to about 7 million. The top five nations that the Pakistani diaspora calls home include the United Kingdom (1.2 million), The Kingdom of Saudi Arabia (1.2 million), the United Arab Emirates (1.1 million), the United States (700,000) and Canada (300,000), according to Pakistan's Dawn newspaper.

The nations ranking ahead of Pakistan are Mexico at #1, India at #2, Russia at #3, China at #4, Ukraine at #5 and Bangladesh at #6. Both the UK and Pakistan are tied at #7 with 4.7 million emigres, according to the World Bank.

World's Top 10 Diasporas:

Here are the top 10 national diasporas:

1. Mexico 11.9 million

2. India 11.4 million

3. Russia 11.1 million

4. China 8.3 million

5. Ukraine 6.6 million

6. Bangladesh 5.4 million

7. Pakistan 4.7 million

7. United Kingdom 4.7 million

8. Philippines 4.3 million

8. Turkey 4.3 million

9. Egypt 3.7 million

9. Kazakhstan 3.7 million

10. Germany 3.5 million

10. Italy 3.5 million

Diaspora Remittances:

The World Bank's Migration and Remittances Factbook 2011 ranks Pakistan at #11 in 2010 for remittances of $9.4 billion sent home by its diaspora. The State Bank of Pakistan reported that overseas Pakistanis sent home $5.291 billion during six months from July to Dec, 2010, an increase of $761 million or 17 per cent year over year, according to Pakistan's Dawn newspaper.

India tops this list with remittances of $55 billion sent home in 2010, followed by China ($51 billion), Mexico ($22.6 billion), Philippines ($21.3 billion), France ($15.9 billion), Germany ($11.6 billion), Bangladesh ($11.1 billion), Belgium ($10.4 billion), Spain ($10.2 billion), Nigeria ($10 billion) and Pakistan ($9.4 billion).

Per Capita Remittances:

In terms of per capita remittances based the World Bank data, China leads the world with an average of $6,100 sent home by each member of the Chinese diaspora, followed by the Philippines ($4,953), India ($4,824), Bangladesh ($2055), Pakistan ($2000), Mexico ($1904), UK ($1,574), Ukraine ($803) and Russia ($504). These per capita figures are an indication of the wealth of each diaspora and the extent of the brain drain experienced by these nations.

Top Immigration Countries:

With 42.8 million immigrants, the United States is home to the world's largest immigrant population. India and Pakistan also have the distinction of being on the list with 5.4 million immigrants in India at #10 and Pakistan with 4.2 million immigrants at #13. Other nations on this list include Russia at #2 (12.3 million immigrants), Germany at #3 (10.8 million), Saudi Arabia at #4 (7.3 million), Canada at #5 (7.2 million), the UK at #6 (7 million), Spain at #7 (6.9 million), France at #8 (6.7 million) and Australia at #9 (5.5 million).

Examples of Diaspora's Role:

Diasporas of various nations are mutually beneficial to both the sending and the receiving countries. They send home the money to help their families and friends financially. And they often acquire advanced education and technical, professional and managerial skills and contribute to solving problems in their host nations in the West. And given the right political and policy context, the members of the diaspora can also help their countries of origin by using their deep knowledge of their home countries and by offering advanced skills, experience and knowledge acquired in more developed nations.

In terms of development help with the skills and capital of the diaspora for their home nations, there are three examples of fairly old and mature diasporas: China, India and Armenia. While China and India have benefited greatly from their diasporas, Armenia has lagged badly, according to a World Bank report titled "Work Globally, Develop Locally: Diaspora Networks as Springboards ....

Pakistani Diaspora's Role:

In Pakistan's case, growing remittances amounting to 5% of its gdp in 2010 from the nation's diaspora provided an important lifeline for the state of Pakistan in funding its large current account deficit and in helping the individuals and families receiving the funds to supplement their incomes.

Remittances are a source of income for households in Khyber Pakhtunkhwa (KP) and other provinces in Pakistan, according to a 2010 World Bank report titled "Poverty fell in Pakistan in 2001-08 partly because of remittances". A recent Asian Development Bank study found that foreign remittances constituted 9.4 percent of household income in KP, compared to 5.1% for Punjab, 1.5% for Baluchistan, and 0.7% for Sindh.

Beyond the remittances, can Pakistan also benefit from its growing diaspora like India and China have from theirs? With millions of Pakistanis in Europe and America, many of them highly skilled entrepreneurs and business and technology professionals, Pakistani diaspora can be very helpful to their home country in its business, economic, social, political, educational and technological development. The realization of such great potential will only be possible if Pakistani government's public policy, public-private partnerships and state-to-state relations with the West create the necessary conditions for it to happen. Existing organizations of Pakistanis, such as OPEN Silicon Valley, APPNA, and PakAlumni Worldwide, can be helpful in such an endeavor.



Among the emerging diaspora networks, the effort of South African Network of Skills Abroad (SANSA), established by the University of Cape Town’s Science and Technology Policy Research Center, is worth watching. SANSA aims to promote collaboration between highly skilled expatriate scientists and technologists and their counterparts in South Africa. The target group is alumni of all major South African universities working in the West.

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Views: 1123

Comment by Riaz Haq on August 15, 2018 at 8:34pm

#Remittances from #diaspora keep #Pakistan's economy afloat. Estimates average from $1.7 to $1.9 billion a month, adding up to $22 billion per year. #IMF #Reserves #bailout #exports #trade #imports
https://www.khaleejtimes.com/remittances-keep-pakistans-economy-afloat

Pakistan's economic lifeline is its remittances. A staggering $2billion from overseas Pakistanis per month on an average is a blessing in disguise for the cash-starved economy and has widely helped in balancing payments towards imports, especially oil. They have acted as a catalyst in growth and investments. Undisputedly, it is one of the primary sources of foreign exchange reserves for the country and for an economy, which is ridden with inflation and slump in exports, the annual subscription of more than $25 billion acts as its backbone.

The good point is that despite somersaults on the global economic level and a nosedive, Pakistanis have stood fast in retaining their culture of remitting back home, and have widely entrusted the country's banks and other legal avenues for transfer of funds. Despite a wide gap in the dollar rates in open and banking markets, overseas Pakistanis preferred to send money mostly through the banking channel. This reflects their confidence in the government, as well as banks operating in Pakistan. The State Bank of Pakistan, in one of its recent reports, said that Pakistan has fared relatively better than other regional countries concerning foreign remittances.

Estimates say an average of $1.7 to $1.9 billion is received on a monthly basis, which accounts for a staggering $22 billion per annum. Most of the remittances are from the Middle East and Gulf countries, especially Saudi Arabia, the UAE, and Oman. Payments from all important destinations, except Saudi Arabia, showed positive growth. Inflows from the kingdom declined 7.5 per cent during the last fiscal year to the tune of 5.5 per cent. Nonetheless, Pakistan received $2.5 billion from Saudi Arabia in the year 2017. The second highest inflow is from the United Arab Emirates, which increased 1.13 per cent to $2.2bn.

A silent but sizeable chunk of remittances, although on a quarterly and six-monthly basis, are also registered from the United States, the European Union, South Africa and Australia. Many of the Far East Asian countries, especially Malaysia and Hong Kong, Korea and Japan also are potential remittances pockets. Remittances from the US have also seen an upward trend by around 10 per cent, to cross the barrier of one billion dollars per quarter. Similarly, inflows from the UK also recorded an increase of 23 per cent to $1.35 billion.

This primarily acts as seed money for the country's balance of payments, and to a great extent compensates for lack of foreign investment and slowdown in portfolio investments. The pre-budget Economic Review, however, estimated that remittances could grow by 50 per cent if the government provides due incentives to its non-resident citizens, and ensures that their foreign exchange is safe and reusable in the same currency. Likewise, remittances directly deposited in Pakistani bank accounts can also get a boost and shoot up to $100 billion - a retained safe territory, if stringent measures are taken and assurances on withdrawals limits are waived.

The free flow of foreign currency in the form of remittances can lift the economy to new heights. Pakistani foreign currency accounts maintained abroad are in billions of dollars, and a submission in the Senate of Pakistan said that they account for around $800 billion. That money sooner than later should be in the mainstream of Pakistan economy, provided anti-money laundering policies get thumbs up.

Comment by Riaz Haq on November 18, 2019 at 7:58pm

At 17.5 Million, Overseas Indians Are Largest Community In The World: UN

Migrants from Mexico constituted the second largest diaspora - 11.8 million, followed by China - 10.7 million, Russia - 10.5 million, Syria - 8.2 million, Bangladesh - 7.8 million, Pakistan - 6.3 million, Ukraine - 5.9 million, the Philippines - 5.4 million and Afghanistan - 5.1 million.

https://www.ndtv.com/india-news/at-17-5-million-overseas-indians-ar...

The International Migrant Stock 2019, a dataset released by the Population Division of the UN Department of Economic and Social Affairs or DESA today, provides the latest estimates of the number of international migrants by age, sex and origin for all countries and areas of the world.

The estimates are based on official national statistics on the foreign-born or the foreign population obtained from population censuses, population registers or nationally representative surveys.

The report said that the top 10 countries of origin account for one-third of all international migrants. In 2019, with 17.5 million persons living abroad, India was the leading country of origin of international migrants.

Migrants from Mexico constituted the second largest diaspora - 11.8 million, followed by China - 10.7 million, Russia - 10.5 million, Syria - 8.2 million, Bangladesh - 7.8 million, Pakistan - 6.3 million, Ukraine - 5.9 million, the Philippines - 5.4 million and Afghanistan - 5.1 million.

India hosted 5.1 million international migrants in 2019, less than the 5.2 million in 2015. International migrants as a share of total population in India was steady at 0.4 per cent from 2010 to 2019.

The country hosted 207,000 refugees, the report said adding that refugees as a share of international migrants in the country was four per cent. Among the international migrants in the country, the female population was 48.8 per cent and the median age of international migrants was 47.1 years. In India, the highest number of international migrants came from Bangladesh, Pakistan and Nepal.

In 2019, regionally, Europe hosted the largest number of international migrants (82 million), followed by Northern America (59 million) and Northern Africa and Western Asia (49 million).

At the country level, about half of all international migrants reside in just 10 countries, with the United States of America hosting the largest number of international migrants (51 million), equal to about 19 per cent of the world's total.

Germany and Saudi Arabia host the second and third largest numbers of migrants (13 million each), followed by Russia (12 million), the United Kingdom (10 million), the United Arab Emirates (9 million), France, Canada and Australia (around 8 million each) and Italy (6 million).

The share of international migrants in total population varies considerably across geographic regions with the highest proportions recorded in Oceania (including Australia and New Zealand) (21.2 per cent) and Northern America (16.0 per cent) and the lowest in Latin America and the Caribbean (1.8 per cent), Central and Southern Asia (1.0 per cent) and Eastern and South-Eastern Asia (0.8 per cent).

A majority of international migrants in sub-Saharan Africa (89 per cent), Eastern and South-Eastern Asia (83 per cent), Latin America and the Caribbean (73 per cent), and Central and Southern Asia (63 per cent) originated from the region in which they reside.

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