State Bank of Pakistan rejects news of $4.9 billion outflow to India
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KARACHI: (APP) State Bank of Pakistan (SBP) has taken note of a report suggesting an outflow of $ 4.9 billion from Pakistan to India as remittances.
This number is given in Migration and Remittances Factbook 2016 prepared by the Global Knowledge Partnership on Migration and Development (KNOMAD), said SBP statement here on Wednesday.
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At the outset, it must be noted that the Factbook data on bilateral remittance flows are estimates (not the actual flows), which are based on a number of assumptions about migrant stock, per worker income etc.
The methodology used to estimate these numbers is based on a World Bank's Working Paper by Ratha, Dilip, and William Shaw ( South-South migration and remittances. No. 102. World Bank Publications, 2007).
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This methodology has serious issues, particularly in case of Pakistan, as also acknowledged by the authors themselves stating that Interpreting the meaning of migrant stocks also presents some difficulties.
Pakistanis in India and Russians in Ukraine became migrants following partition of the original country. Thus, the study is clearly flawed as the migrants at the time of Indo-Pak partition in 1947 had become citizens of Pakistan. Therefore, SBP categorically rejects such estimates as these are contrary to facts and do not make sense.
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The actual balance of payments data shows that outflow of workers' remittances from Pakistan to India were $ 116,000 in fiscal year 2015-16 and the inflows from India to Pakistan were $ 329,000.
The value of Pakistan's exports to India was $ 425 million, while imports from India amounted to $ 1,415 million during fiscal year 2015-16.
