Sidra Javaid (103306)

Syeda Noreen Zahra (o43187 )

Introduction to Remittances. History of its beginning. Significance. Types. Advantages of Remittances. Effects on Economy. Money Exchange Centers for Remittances Major Countries with Pakistani working overseas. Disadvantages. Recommendations Conclusion.

A remittance is a Transfer of money by a foreign worker to his or her home country

Remittances contribute to economic growth and to the livelihoods of people worldwide.

Remittance transfers can also promote access to financial services for the sender and recipient Increases financial and social inclusion.

Creates further economic dependence on the global economy instead of building sustainable, local economies.
It may be inward or Outward

Migration has always been a part of human history.

In the 19th and 20th century; Spain, Italy and Ireland were heavily dependent on remittances
In the case of Spain, remittances amounted to the 21% of all of its current account income in 1946. Italy was the first country in the world to enact a law to protect remittances in 1901 while Spain was the first country to sign an international treaty (with Argentina in 1960) to lower the cost of the remittances received.

Playing an increasingly large role in the economies of many Developing countries Contributing to economic growth and to the livelihoods of less prosperous people. The World Bank and the Bank for International Settlements have developed international standards for remittance services.

 In

a Geographical concept, the three types of Remittances are the following

Intra-regional

Domestic
International

 1. 2. 3. 4.

Family Remittances.

Community Remittances.
Migrant Worker Remittances. Social Worker Remittances.

The large inflows in foreign currency lead to domestic currency to appreciate. A large number of workers go to countries that are developing their economies And, commodity-rich countries also have good demand for labor.

The inflow of cash assists the recipient country in reducing Deficit of its balance of payments Migrant send the remittance back to home countries in many ways like wire transfers via banks demand drafts Cheques These funds sent by immigrants are keeping the wire transfer companies well in business

It permit the home country to buy imports easily

The presence of foreign workers assists in alleviating labor shortages. The social networks created by foreign workers leads to more integrated cultural understanding by interactions between local populations and migrants.

United states United kingdom

France
Japan Switzerland uk

 Israel Latin America China

India
Mexico Philippine Pakistan Bangladesh

Remittances seem to have a positive but marginal effect on economy through the improvement of domestic investment and human capital Remittances have a significant direct impact on poverty reduction Government needs to have a policy scheme

The bottom line is that remittances are an important factor in the global economy, and help drive growth both at home and abroad.
The updated data on worldwide remittance flows - including flows to developing countries and high income countries - to $483 billion in 2011. Of this, developing countries received $351 billion in 2011. Worldwide remittance flows are expected to reach $593 billion in 2014.