9% growth has been projected by the World Bank (WB) in remittances for Pakistan. Now in 2020 they total about $24 billion.
According to the details, in its latest report the World Bank, “Migration and Development Brief 33, Phase II COVID-19 Crisis through a Migration Lens”, stated that in both Pakistan and Bangladesh, the negative impact of the COVID-19–induced global economic slowdown has been somewhat countered by the diversion of remittances from informal to formal channels due to the difficulty of carrying money by hand under travel restrictions as well as the incentives to transfer remittances.
Pakistan launched a tax incentive on July 1, 2020, whereby withholding tax was exempted from cash withdrawals or the issuance of banking instruments/transfers from a domestic bank account. The tax incentive is capped by the remittance amounts received from abroad into that account in a year, it added.
In India, remittances are projected to fall by about nine percent in 2020, to $76 billion. In Pakistan, remittances would grow at about nine percent, totaling about $24 billion. In Bangladesh, remittances are projected to grow at about eight percent to around $20 billion. Remittances to Nepal and Sri Lanka are expected to decline by 12 percent and 9 percent, respectively, in 2020.
Furthermore, the coronavirus‐related worldwide slowdown and travel restrictions will impact the migratory movements. This might keep the remittances quiet even in 2021. This was revealed by the World Bank.