In the last 13 years, Pakistan for the first time faces annual inflows drop from 2016-17 according to the data of the State Bank of Pakistan, released on Monday.
The remittances in the last economic year recorded a decline of 3.08 percent to $19.3 billion.
The fall is a major warning to the Government which already is in a messy situation due to the political conditions of the country.
The dropped remittances is an indication that the Ministry of Economy should work on developing a new revenue stream and fresh economic policies.
The sharp fall in the remittances also affected the Pakistanis working abroad as our inflows hugely depend on the Gulf states which are suffering through the unstable political and economic conditions.
Resulting, the blockage of the salaries to the many overseas Pakistani workers. Also when there was a crisis of the oil prices, many of the Pakistanis working abroad, lost their jobs following the lowered inflows.
Remittances from the important sources including, United Kingdom (UK), United States (US), Saudi Arabia, United Arab Emirates (UAE) and other Gulf states have been declined to a great extent.
The inflows drop from the UAE recorded 1.27pc to $4.3 billion. Also, the remittances from the other Gulf countries lowered down 4pc to $2.32 billion.
The major decline of the inflows from the US recorded 3.2pc to $2.44 billion while the downfall in remittances from the UK is 9.36pc to $2.33 billion.
Apart from the Gulf states, the Government should look at the other developed countries for the purpose of trade, as currently, the Gulf countries are facing unstable conditions.
Also, Pakistan needs to go for the another revenue stream to balance the economy of the country and to raise the exports.
The finance ministry of the country always opts for raising the already high taxes resulting, the rise in the poverty and collapsed economic system.
The task of initiating new revenue stream requires intellectual management and not following the old traditional governmental schemes.
It’s the time that new economic policies should be made in order to introduce another revenue stream rather than raising the taxes.