This is apropos a Business Recorder news item "July-Feb workers' remittances down 2.47pc" carried by the newspaper on Saturday. It has been reported that workers' remittances maintained a downward trend declining slightly by 2.47 percent during the first eight months (July-Feb) of this fiscal year (FY17). According to State Bank of Pakistan (SBP), overseas Pakistani workers remitted an amount of $ 12.363 billion in July to February of FY17 compared with $ 12.677 billion received during the same period in the preceding year, showing a decline of $ 314 million.
That workers' remittances provide a support to Pakistan's balance of payment is a fact. A decline, however modest, is highly alarming because the country is already witnessing an export slide for quite some time.
Needless to say that export earnings too help propel country's balance of payment position. It means there is a double whammy of lower exports and reduced remittances.
The situation that is obtaining in the realm of exports and workers' remittances could hurt country's ability to make external or foreign debt repayments. Does the government have any plan to deal with the present challenge?
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