With the increasing groups of Pakistani and Bangladeshi migrants worldwide, remittance inflows have increased as a result. Pakistani expatriates who transfer money to Pakistan worldwide have played a chief role in increasing remittance inflows in the country. Similarly, other diasporas also make money transfers to their families by large from various countries that add to the country’s economic strength.
Remittances can be defined as the money that overseas workers earn in a foreign land and then send it back to their families in their country of origin. According to International Monetary Fund (IMF), the value of money transfers sent by workers outside their origin country for a period of one year and registered in different sections of the balance of payment are labelled under remittances.
In developing countries like Pakistan and Bangladesh, remittances have played an important role and are directed as a stable source of income for the migrant’s household. But why do Pakistani and Bangladeshi individuals need to move to a different country and send money back home?
The need for online money transfers for Pakistani and Bengali expatriates
It is a known fact that Pakistan and Bangladesh stand among the category of third-world countries. Many factors need to be met to become among the top countries. One of which is increasing the GDP of these countries. Remittances have benefitted countries like Bangladesh and Pakistan immensely, increasing economic factors like the country’s GDP. Labourers from Pakistan and Bangladesh move to other countries due to the relatively high-wages other countries offer. The higher their wages are, the more they can provide for their families in the origin country.
People might think that natives going abroad would affect the country’s manpower drastically. But this might be solved with the increase in remittance inflows in the country. Consider it as an increase in non-labour income. Meaning income without people actually residing in the origin country.
Stats, facts and figures for Pakistan and Bangladesh
Overseas workers’ remittances are great for long-run economic development rather than the short term. In 2017 Pakistan received a total of $19.7 billion in remittances. Bangladesh, on the other hand, received $13.5 billion in remittances. These states continued to grow till 2020 by 3.1% for Bangladesh and 2.4% for Pakistan.
According to the data presented by the World Bank in 2021, Pakistan stood at number five as the top remittance-receiving country. Bangladesh was placed the eighth number on the list. The data also presented the remittance results concerning the country’s economic growth. Bangladesh’s GDP increased till 2020, and after the pandemic, it reduced a bit but spiked again. Similar was the case with Pakistan, in which remittance had a huge role to play.
But, what factors rise due to the increase in remittances?
A country’s economy needs to be increased for it to excel amongst others. Remittances are a part of the import/export category. With the increase in money transfers from various parts of the world to migrant origin countries, many economic factors are also elevated. Factors such as increasing national savings, reducing the limitations associated with foreign exchange, and the balance of payment contribute to the development budget. All these factors align to form a strong and independent nation.
Evidence from the World Bank and the Bank of Bangladesh papers show that remittances directly increase gross domestic product, household consumption and expenditure rates. As a result, the increase in government consumption expenditure decreases, causing inflation and population growth. However, remittance should be transmitted through proper channels for it to help countries like Pakistan and Bangladesh.
So, what channels should be used to send money to Bangladesh and Pakistan?
Mostly, third-world countries like Pakistan and Bangladesh are in great need of remittance inflows. If transferred through a proper channel like online money transfer service providers, remittance can drastically help a nation in its economic growth. By proper channels, it means that remittances should only be sent through legal and reliable money transfer systems.
As the majority of the world has shifted to online money transfer systems, it is advised that online money transfer service providers such as ACE Money Transfer should be used for international remittances. Such service providers are responsible, reliable and efficient for your hard-earned money to safely reach your loved ones in your origin country.
The best remittance service provider to send money to Pakistan and Bangladesh online.
The main aspect to look for in online money transfer service providers is reliability, efficiency and reputation. ACE Money Transfer possesses all three of these qualities. ACE has notched the remittance game with hundreds of receiving countries at its side and 350,000 payout locations. About 1.3 million customers have been enjoying ACE’s services worldwide.
ACE’s services have made it easier for Pakistani and Bengali expatriates to send and receive money internationally. Moreover, the recognition it has gained for its well-reputed nature of work has given it a thumbs-up from its customers worldwide.