According to the report of World Bank, Indian immigrants and expats are sending a lesser amount of money back home while Pakistanis are sending more than them. The World Bank also reported that according to the “Trends in Remittances, 2016”, India will still continue to be the world's biggest beneficiary of remittances. Indians will remit SR 28.5 billion from Saudi Arabia which is around $7.6 billion this year. Previous year this amount was more than what they are expected to send this year. Many Indians and the other immigrants in the Saudi Arabia are suffering from the issue of delayed salaries. Salaries in the Saudi Arabia are predicted to increase by 4.6 percent in comparison with a GCC average of 5.2 percent.
According to the data provided by the State Bank of Pakistan (SBP), Pakistani labors sent money amounting to over SR 22 billion i.e. $5.9 billion in 2015-16, which is 4% greater than the preceding fiscal year. Remittances to India from the GCC decreased by 2.2 percent accounting to US$35.9 billion within 12 months till March, compared to previous year. The GCC is India’s largest source of remittances because of the great number of Indian immigrants working in the area. The main question is that, why are Indians sending lesser to their relatives and families back home as compared to Pakistanis.
One of the reports focused that, in 2016, transfer flows are probable to decrease by 5 percent in India and 3.5 percent in Bangladesh. On the other hand, remittances are expected to increase in Pakistan and Sri Lanka of about 5.1 percent and 1.6 percent respectively. The WB report stated that sending money from the Gulf Cooperation Council countries is getting lesser due to lower oil prices. The decrease in oil prices and the monetary slowdown has been stable for the past one year, as said by Adeeb Ahamed, the chief administrative of Lulu International Exchange. This thing for sure had an effect on the remittance volume from the Gulf Cooperation Council to India.
This is regardless of the Indian currency trading at moderately low levels against the US dollar. This year, among the top recipients of remittances, are India and China followed by Philippines, Mexico and then Pakistan.
A research report stated that salary growth in the Saudi Arabia is estimated to be lower than the average rate of the trek in the GCC, given the current financial crisis in Saudi Arabia, workers in the Kingdom set to enjoy a 4.6 percent net salary increase in 2016, which is the greatest in the area.
Miscellaneous Information about KSA
- 6% Tax on Foreign Remittance (Foreign Money Transfer)
- Procedure to Transfer Money through Enjaz Remittance
- 5 Best Ways to Transfer (Remit) Money to India
- Foreign Remittance Charges from Saudi Arabia
- What is Hawala System of Remitting Money? Is it legal?