Ministry rejects WB’s warning about reduction in remittances

The finance ministry rejected the World Bank’s claim about the reduction in remittances, saying the volume will be around $20 billion to $21 billion, reported 24NewsHD news TV channel.

Around $17 billion had already been transferred as remittances during the period July to March, showing an increase in 6.2 percent, the ministry added.

It said an incentive scheme was launched to enhance the remittances, adding that the claims made by the World Bank were baseless as it did not consider the government’s efforts.

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The finance ministry said the effects of coronavirus were dependent upon intensity and duration. The World Bank prediction was based upon on the worst possible scenario, it added.

There is a difference between ground realities and assumptions, the ministry further remarked.

The reaction came as the World Bank last week predicted up to 23 percent decline in remittances to Pakistan, saying the amount would be around $17 billion in 2020 against 22.5 billion recorded in 2019. 

In a latest report, the World Bank also mentioned that the crisis could be long, deep and pervasive because of migration, as it cited the return of migrants from the Gulf States to countries like Pakistan, India and Bangladesh.

Meanwhile, the most interesting thing about the clarification given by the finance ministry is that it is talking about the financial year 2019-20, but the World Bank report is focused on the year 2020.