Financial & Economic Blog

You might not hear of the  public transferring cash  to Pakistan as often as they do other nations,  but it is certainly possible through  a range of methods. Before you send money to Pakistan,  consider knowing a bit about the trends  surrounding transfers to this nation. You might  learn that you are not alone in trying to send  funds to your family just to help support them.

The flow of remittance to Pakistan  has definitely had its ups and downs  in the past many years.  The early 1980s experienced a peak of transfers,  as the amount was at about $3 billion each  year at that time. Though it reduced to about  $2 billion each year or less during the 1990s, the year 2002 experienced  a significant increase in remittances. That year,  roughly 3.5 billion was sent to Pakistan, and it  gradually increased over the years until it hit  a record-breaking $5.5 billion in 2006.

Clearly,  this trend of increases of citizens  able to send money to Pakistan has not let up. 2007 experienced  almost $6.5 billion of transfers, and 2008 followed  suit with $7.8 billion. Due to these changes, transfers  are now being watched more closely than ever by a few agencies  that are curious as to the reason for the boost.  More people than before are additionally now sending  money out of Pakistan to other countries, though the  most recorded was about $10 million in 2004.

Methods  for transmitting capital  to Pakistan include banks, money transfer agencies,  and the use of a prepaid debit card. Most people in the United States  have access to such programs, though most other nations  also offer these options. Also, the  classic method of sending funds  through a middleman, called Hawala, still exists. Unfortunately,  since most of this option is off record, there are few  statistics that help keep track of the number of  people using this option. However, newer methods,  particularly the prepaid debit card, are typically  inexpensive and easy enough to use that many people  opt for those instead of the once thriving Hawala tactic.

If you have  to send money to Pakistan, whether to your bank back home or to your  relatives to help them pay bills, there  are many choices.  Remittances to this country may not be widely  discussed like they are when they deal with closer countries,  but they are rather accepted. The numbers  show that they are actually increasing in popularity, which  could signify more accessible methods to  send money Pakistan in the future.