Remittances up - PRI???

Remittances sent home by overseas Pakistanis remained uppish last month. Despite a slight month-month decline of 0.75 percent, the workers monies increased by nearly 39 percent year-on-year. Considering that Eid is around the corner, one can expect inflows in August to rise further. Data compiled by the State Bank of Pakistan show that in the last four years, remittances tend to edge higher by an average 10-11 percent (month-on-month) in the Gregorian month that coincides with the Islamic month of Ramazan. Assuming if that trend holds strength this year as well, then one could expect August remittances to land at around $1200 million, which if materialised would be the highest monthly inflow ever. Another interesting reading from the data is the gradually increasing reliance on inflows from Saudi Arabia and the UAE. As a percentage of total inflows, remittance from Saudi Arabia ticked higher to 26.62 percent in July from an average of 23.84 percent in the fiscal year 2011. This can partly be attributed to PRI whose efforts to formalise remittance inflows have mainly been concentrated around that coming from Saudi Arabia and the UAE. Looking ahead, if the fears of double-dip recession come true, one could see unemployment rising in the countries that boast a sizeable Pakistani diaspora. That in turn could trigger a fresh increase in remittances as workers find their way back home, bringing their savings along with them. But of course that would only be short-to-medium term impact. How does the PRI plan to deal with the ongoing global dynamics, nobody knows. Ever since the kidnapping of PRI head Najmus Saqib, the department has been silent to the media. In fact, even after his return, nobody has picked up the phones in the PRI department since weeks. Has PRI been shut down, who is heading it in Saqibs absence, what strategy does PRI have in mind to deal with ongoing global economic headwinds, and whether the rising remittances are in fact means of money whitening, as is being argued by certain quarters, are just some of the many questions that are still left unanswered to date.