International day of family remittance is being observed all over the world, today. United nations general assembly adopted 16th June as IDFR the ‘international day of family remittances.
In simple terms remittance is defined as a money transfer from a person living abroad to a person in his homeland. Remittances may include family and friends personal money transfers or corporate or business payments. Remittances play a very vital role in stabilizing the economy of a nation.
In February 2015, all 176 IFAD Member States unanimously declared it, and governments, regulators, financial institutions, and development groups have recognized and since then every year on 16th June the day is observed. Every year on 16th June international day of family remittances are observed to celebrate the diaspora and migrant men and women who work abroad and send in money to their home countries to support their families and help the economy of the home county grow. The day is celebrated to honor those people who travel miles away from their homes for economic reasons. The day also holds significance because it aims at lowering the tax amounts and transfer costs of remittances and also promotes financial inclusion and the development of the homelands of migrants.
Remittances over time have become a key economic tool, especially for developing nations. The remittances sent to home states by the migrants not only benefit their families, but also their home nations as it increases international aid and frequently outnumbers foreign direct investment, and also play a vital role in financial inclusion as money and wealth from developed nations is distributed among the developing and non-developed nations through remittances.
IDFR PAKISTAN 2021
Remittances play a huge part in the economy of Pakistan. It is categorized as Pakistan’s single greatest foreign exchange source before exports. Remittances have a strong and positive impact on the economy of Pakistan. Remittances benefit Pakistan’s economy by improving the country’s balance of payments and reducing its reliance on foreign aid. The state bank records showed that even in the economic slowdown, due to COVID circumstances, from July 2020 to April 2021 diaspora payments have soared to an all times high of $24.2 billion. Diaspora payments have grown by 29 billion at the same level. People living in the gulf cooperation council countries especially in Saudi Arabia and UAE have been a key tool to this improvement.
Today on the occasion of International remittance day Pakistan MOFA spokesperson Zahid Hafeez Chaudhri on Twitter recognized the efforts made by Pakistani living abroad who send in remittances to Pakistan to support their families as well as the economy of Pakistan. He recognized their efforts and declared overseas Pakistani as an asset for Pakistan.