January 30, 2016

The Importance of Saudi Arabia for Pakistan

By: Azhar Azam

There are a number of individuals, professed human activists, media persons and certain political parties who have been criticizing Saudi Arabia for extending unconditional cooperation towards Pakistan intentionally or unintentionally to achieve their indistinctive objectives.

It is therefore need of the hour to give a shut-up call to such plotted facets blowing at Saudi Arabia to divest Pakistan with one of its all-times ally and supporter on international forums and is facilitating millions of Pakistanis by providing jobs and earning worthy foreign exchange for Pakistan.

Unlike The United States, Saudi Arabia has never questioned Pakistan “you are with us or against us” and always has realized Pakistan internal economic, political and military situation in place of imposing decisions to suspend aid or send back millions of Pakistanis workers there.

Saudi Arabia Role Whenever Pakistan Confronted Challenges
Saudi Arabia and Pakistan have maintained deep, unique and durable friendly relations over the decades. It is whether Pakistan suffering natural disasters such as floods, earthquakes or in a state of traditional war or fight on terror, its support and assistance across multifold levels could not be refuted.

In May 1998, when the-Prime Minister was in dilemma to respond to Indian nuclear tests over US and EU economic sanctions, Saudi Arabia’s commitment to provide 50,000 barrels of free oil per day (worth $2 billion) helped him to decide nuclear tests. Irrespective of the civil or military rule, the kingdom makes sure that the nuclear deterrence of Pakistan remains stable and secure even if it has to aid it financially.

The grant of $1.5 billion in 2015 to build up Pakistan foreign exchange reserves is yet another example of the kingdom’s long lasting cooperation. Former Saudi intelligent chief Prince Turki Bin Salman describes “it’s probably one of the closest relations in the world between the two countries”.

Pakistan Military Cooperation with Saudi Arabia
Pakistan, a military giant, too has never disappointed one of its strongest allies, Saudi Arabia in any kind of circumstances and has continuously provided military training, aid and expertise to the kingdom to stemming challenges from the plethora of extremism in the region.

Starting from 1960, Pakistan helped the kingdom’s Royal Saudi Air Force (RSAF) to build and pilot its first jet fighter. During 1980s, Pakistan stationed 15,000 troops to Saudi Arabia including brigade combat force near Israeli-Jordanian-Saudi border. During the first Gulf War in 1991, Pakistan deployed 11,000 troops to shield the two holy mosques.

Pakistan Migrants Worldwide and Saudi Arabia/UAE
According to the statistical report of October 2015, more than 8 million Pakistanis are living in different countries of the world and Saudi Arabia has the largest Pakistani migrants, nearly 2.1 million or 2,100,000.

The other most populated Pakistani immigrant countries are United Kingdom (1.792 million), United Arab Emirates (1.3 million) and The Unites States (0.9 million). So Saudi Arabia and UAE together are holding about 3.4 million Pakistanis, app. 43 percent of total Pakistani immigrants.

Workers’ Remittances to Pakistan by Country and Region, Saudi Arabia/Middle East Leads Overwhelmingly
Pakistan economic conditions and miserable exports have always been critical and highly dependent on foreign remittances sent by Pakistani migrants working all over the world. This is only area, Pakistan has shown development in the last few years and here too, the role of Saudi Arabia is high fundamental.


State Bank of Pakistan (SBP) statistics release shows that Workers’ remittances from Saudi Arabia accounted for 30.5 percent of total foreign remittances to Pakistan valuing $5.88 billion 2015 (July-December).

Dubai is the next highest foreign exchange remitting country for Pakistan with $2.85 billion for 2015. The data further unveils that remittances from Saudi Arabia and Dubai have been increasing in contrast to Pakistan’s allies, The United States and United Kingdom.

Narrowing the study to the regions, the data enlarges the importance of Middle East in the economy of Pakistan.


In 2015, workers from Middle East have sent remittances worth of $12.60 billion which is 65.3% of total remittances to Pakistan and $3.7 billion more than 2013. Now this is nourishing growth considering Pakistan government who is pleading IMF and other international financial institutional for installments of few hundred million dollars every quarter.

In view of Saudi influence in Middle East, Pakistan could gain huge financial advantages both for itself and its people but few elements could not digest the growth of Pakistan and people of Pakistan undermining the relations between the two countries.

Sources: Brookings, CPakGulf, The Word Post, Paki Mag, State Bank of Pakistan



January 29, 2016

Global Foreign Remittances to Exceed $601 Billion in 2016



The remittances from workers or international immigrants play a pivotal role in the economies of the developing countries in the world. The migration of people from developing-to-developed, developing-to-developing and even developed-to-developing countries derives substantial amount of foreign exchange for their countries and provide financial assistance to their families.

In December 2015, World Bank has issued a press release that states that International migrants are expected to send $601 billion back home in 2016 where developing countries would be sharing >73% of the total remittances to their motherlands, $441 billion.

Largest Remittances Source Countries
The following three are estimated to be the largest remittances source countries in 2014:

1. The United States $56 billion
2. Saudi Arabia $37 billion
3. Russia $33 billion

The United States tops the table despite the fact that many of migrants are nationalized and settled in there with families and rarely has to send remittances to their countries. Saudi Arabia is surprising the second largest remittances source country as it has to take drastic measures in its recent budget to cut down in government spending due to falling oil prices internationally. Russia, 3rd, is also facing the same problem as Saudi Arabia.

Largest Remittances Receiving Countries
The three largest remittances receiving countries with estimated inward flows in 2015 are:

1. India $72 billion
2. China $64 billion
3. Philippines $30 billion

India, 2nd most populace country in the world but a developing country so as expected, tops the chart in largest remittances receiving countries. China grippingly remains 2nd, may be owing to its slow growth rate while Philippines emerged as 3rd largest earner through remittances.

Top 10 Migrant Destination Countries
The report includes the following as top 10 migrant destination countries:

1. The United States
2. Saudi Arabia
3. Germany
4. Russia
5. United Arab Emirates
6. United Kingdom
7. France
8. Canada
9. Spain
10. Australia

Saudi Arabia 2nd and United Arab Emirates (4th) are the major Middle East countries providing migrants to reap earnings whereas the countries like United Kingdom, France and Canada are lagging behind, again due to the nationality factor.

Top 10 Migrant Source Countries – Pakistan Placed 6th
The top 10 countries from where the migrants travel to the destination countries are:

1. India
2. Mexico
3. Russia
4. China
5. Bangladesh
6. Pakistan
7. Philippines
8. Afghanistan
9. Ukraine
10. United Kingdom

The number of total international migrants is expected to cross 250 million this year in search of better financial and job opportunities. Mexico-United States was the largest migration corridor with an estimated number of 13 million international migrants in 2013. Russian-Ukraine, Bangladesh-India and Ukraine-Russian are the next three in this category.

Mexico and Bangladesh are finding opening areas in their neighbor countries, The United States and India respectively while Pakistan has more manpower in Saudi Arabia and United Arab Emirates than other countries.

Turkey and Pakistan, the Largest Refugees Host Countries
In 2014, out of 14.4 million refugees (excluding 5.1 million Palestine refugees), nearly 86% refugees were hosted by Turkey, Pakistan, Lebanon, Iran, Ethiopia, Jordan, Kenya, Chad, Uganda and China whereas advanced countries hosted just 1.6 million refugees.

Data Source: The World Bank