Islamabad: The rating agency Moody’s has forecasted that Pakistan’s remittances will continue to grow in the coming years as a result of the measures announced by the Pakistani government and the State Bank of Pakistan in recent months – a news source reported on February 23.
The report notes that the remittances will continue growing over the coming years although the growth rate is expected to slow down. The Pakistan Remittances Initiative and technical advances which have reduced the transaction costs for the remittances through electronic and official channels have been identified as the primary drivers of this growth.
The report also notes that the increase is credit positive for Pakistan’s banks, particularly for United Bank since it has a leading market share of around 24% for the remittances as of September 30, 2020.
The development is the opposite of what Moody’s had expected due to the pandemic. Various international organisations had predicted that remittances would remain flat, while World Bank had forecasted a decline in global remittances.