Pakistan to open a challenger bank for remittances.

PM Imran Khan has given the approval for a National Challenger Bank that would be used for remittances.

Prime Minister Imran Khan on Tuesday principally approved the country’s first National Challenger Bank to facilitate digital transfer of remittances from across the world.

Source.

This would probably be the first time in any country, a specific challenger bank is being opened to aid & facilitate the inward remittances. Who will run the challenger bank, will it be a subsidiary of an existing government owned bank, how will State Bank of Pakistan issue a license for the same, all remains to be seen. However, a step in the right direction nonetheless.

Money Remittance to Philippines reaches Record High

Remittances to India were the highest in 2018. However, according to a report released by Bangko Sentral ng Pilipinas (BSP), the central bank of the country, money remittance to Philippines also reached a record high in 2018.

In December 2018, remittances increased by 3.6 percent. Cash remittances and money transfers through banks increased by 3.9 percent. Whereas, the home remittances increased by 3 percent in 2018.

Filipino workers remitted money back home from a number of countries. United States was the number one source for money remittance to Philippines. Remittance from the US amounted to $9.986 billion in 2018. Saudi Arabia was the second largest remittance source. United Arab Emirates was the third largest source, and Singapore, the fourth largest.

Remittances to India the Highest in 2018

Remittance to India were the highest in 2018, according to the World Bank. The country received $79.5 billion in remittances. The second largest remittance receiving country is China with an inflow of $67.4 billion in remittances.

According to the report, remittances to India increased as a result of strong US economy and better employment opportunities in the country.

Top Remittance Receiving Countries data graph from World Bank
Source: World Bank Migration and Development Brief

According the report, the overall remittance inflows in developing countries has increased and the trend will continue in the coming years. ‘Remittance flows to low- and middle-income countries (LMICs) are expected to reach $528 billion in 2018, an increase of 10.8 percent over 2017′ states the report.

Read the complete report here: World Bank Migration and Development Brief 30