Tuesday, 18 August, 2020 I 27 Dhul-Hijjah, 1441 I Rs 15.00 I Vol XI No 49 I 12 Pages I Lahore Edition
Pakistan’s July remittanCes surge to reCord $2.76bn g
Gen Bajwa meets Saudi counterpart during fence-mending visit
RemittanceS incReaSed 36.5pc -- the hiGheSt-eveR level witneSSed By the countRy in a SinGle month
KARACHI MEIRYUM ALI
r
emittanceS rose to $2.77 billion in July, which is the highest ever level of remittances in a single month in pakistan, according to data released by the State Bank of pakistan (SBp) on monday. that represents a year-on-year growth of 36.5pc when compared with July 2019, and 12.2pc when compared to June 2020. last month, remittances were recorded at $2.47 billion, which the SBp had dubbed as ‘historic’ at the time. most of the remittances in July were received from Saudi arabia, at $821.6 million; followed by uae, at $538.2 million; uK, at $393.9 million; and the uS, at $250.6 million. the central bank also noted that the growth rate in remittances compared to the same month in the previous year is around twice as high as the eid-ul-adha re-
lated seasonality typically experienced over the last decade. “Given the impact of covid-19 globally, this increase in worker’s remittances is encouraging,” the SBp said. why have remittances increased? overall, there are two main factors that explain the rise in remittances, along with some minor reasons. the first is that it seems the use of official channels to send remittances has increased, and there has been a decline in traditional hawala and hundi methods of sending cash home. Saad hashmi, executive director of Bma capital, said that the switch from informal to formal was the most likely reason for the rise in remittances. this was a view reiterated by Sateesh Balani, director of research at ismail iqbal Securities, who said, “people might be compelled to use official banking channels as flight reduction may have impacted unofficial flows.”
Coronavirus in
Pakistan
CONFIRMED CASES:
289,214
LAST UPDATED AT 08:53 AM ON AUGUST 17, 2020 DAY'S DEATH TOLL: NEW CASES:
7
488
RECOVERED:
DEATHS:
SINDH:
PUNJAB:
269,087 6,175 126,182 KP:
35,215 AJK/GB:
95,447 BALOCHISTAN:
12,295
ISLAMABAD:
2,184/2,502 15,390
typically, money is sent to pakistan by people physically carrying cash in their luggage, when they travel to visit pakistan. however, due to the covid-19 pandemic, and the subsequent cancellation in flights, people were forced to switch to formal channels, in an effort to make sure money reached their families. in addition, the movement of cash transported on flights increases during hajj and umrah season. But this year, due to the covid-19 pandemic there was a limited hajj, and a bank on umrah, which further curtailed people’s ability to send money through informal channels, and pushed them to use formula channels. For its part, the central bank acknowledged this as a factor in its statement, saying the central bank and the federal government had taken steps under the pakistan Remittance initiative, including reducing the threshold for eligible transactions from $200 to $100 under the Reimbursement of telegraphic transfer (tt) charges Scheme, pushing for adoption of digital channels, and starting targeted marketing campaigns to promote formal channels for sending remittances. pakistan’s informal economy, and informal cash transfers, are rarely recorded in official data. according to some analysts, the jump could actually serve as a more accurate representation of remittances in pakistan, which are much higher than previously perceived. the second factor is that there has been significant job losses in Saudi arabia and the Gulf region due to the covid-19 pandemic, where most pakistani overseas labour works. additionally, Saudi arabia was also impacted by an oil slump, leading to a loss of jobs in that sector. in July alone, more than 50,000 pakistani workers who had lost their jobs had registered themselves with the overseas employment corporation’s (oec) portal in search of job opportunities.
ISLAMABAD STAFF REPORT
chief of army Staff (coaS) General Qamar Javed Bajwa on monday discussed prospects of military cooperation and ways to boost it as well as other topics of common interest with his Saudi counterpart during his visit to the kingdom. the army chief reached Saudi arabia on monday, the pakistan embassy in Riyadh confirmed, amid a diplomatic spat that has threatened Riyadh’s financial lifeline to the cash-strapped economy. General Bajwa reached Riyadh at 10:00 am, the embassy said. inter-Services intelligence (iSi) director General General Faiz hameed also accompanied the army chief. the Saudi chief of General Staff major General Fayyad bin hammad al-Ruwaili received Bajwa, the Saudi ministry of defence said in a statement on its website. “during their meeting, they discussed prospects of military cooperation and ways to boost it as well as other topics of common interest,” the statement said. the two countries are traditionally close and Saudi arabia in 2018 gave pakistan a $3 billion
Zardari, Gilani to be indicted in Toshakhana reference next month ISLAMABAD STAFF REPORT
an accountability court on monday fixed September 9 as a new date to frame charges against former president asif ali Zardari and and former prime minister yousuf Raza Gilani in the toshakhana reference. Zardari had arrived in court with his children party chairman Bilawal Bhutto-Zardari and aseefa Bhutto-Zardari amid heavy security. due to the covid-19 situation, the party had advised workers and supporters not to attend the hearing. the hearing was marred by bickering between national accountability Bureau (naB) prosecutor Sardar muzaffar abbasi and the legal counsels of Zardari and pml-n supreme leader nawaz Sharif, both of whom are nominated in the reference. Barrister tassaduq hanif told the court that he was manhandled by the police while Zardari’s legal counsel Farooq naek said he was not being allowed to enter the court premises. Jahangir Jadoon, who was representing nawaz, also said the same, sparking a reaction from the naB prosecutor. “if you want to proceed with the case then you will have to decide if lawyers can appear in this court,” naek said before the judge. he also pointed out that the courtroom was full of people. “asif Zardari is ill, if [he] contracts coronavirus,
CIE results to be based on teachers' assessment STORY ON BACKPAGE
loan and $3.2 billion oil credit facility to help its balance of payments crisis. But Riyadh is irked by criticism from pakistan that Saudi arabia has been lukewarm on the Kashmir issue, two senior military officials had told Reuters, motivating the army chief’s planned visit. last week, inter-Services public Relations (iSpR) had confirmed that the coaS was travelling, though the official line was that the visit was pre-planned and “primarily military affairs oriented”. pakistan has long pressed the Saudi-led organisation of islamic countries (oic) to convene a highlevel meeting to highlight indian violations in occupied Kashmir. But the oic has only held low-level meetings so far. on august 5, Foreign minister Shah mahmood Qureshi had said: “i am once again respectfully telling the oic that a meeting of the council of Foreign ministers is our expectation.” “if you cannot convene it, then i will be compelled to ask prime minister imran Khan to call a meeting of the islamic countries that are ready to stand with us on the issue of Kashmir and support the oppressed Kashmiris,” he added.
CONTINUED ON PAGE 05
more inside
Murad says no agreement reached with PTI, MQM-P yet STORY ON PAGE 03
10 die as boat capsizes in Keenjhar lake STORY ON PAGE 02 who will be responsible?” he pointed out that former prime minister Gilani contracted the infection after a court appearance. TOSHAKHANA REFERENCE: the reference states that Zardari and Sharif obtained cars from toshakhana by paying 15 per cent of the price of the cars. the bureau further alleged that Gillani facilitated Zardari and nawaz in this regard. he dishonestly and illegally relaxed the procedure for the acceptance and disposal of gifts, issued by the government of pakistan vide cabinet division’s memorandum no.9/8/2004-tK dated June 25, 2007, which expressly stipulates that vehicles shall not be allowed to be purchased by the recipients and be given to the central pool of care of the cabinet division.
CONTINUED ON PAGE 05
Israel, UAE open phone link after peace deal STORY ON BACK PAGE
British government faces mounting pressure over exam row STORY ON BACK PAGE