The major indicators of bilateral economic relations namely trade cooperation and workers remittances are reflecting extraordinary growth.Pakistani workers remittances from Italy increased by a staggering 92% in August 2021 as against August 2020, making Italy the largest contributor in remittances from the European Union, says a press release on Sunday. Keeping in view the growth trend of the last 12 months, Italy could be expected to join the so-called billion dollar club/markets for remittances for Pakistan which could help address the current account gap being faced by Pakistan. While talking to the media, Pakistan’s Ambassador to Italy Jauhar Saleem highlighted some of the main factors that are fueling the unprecedented growth streak in remittances in the last 4 quarters.
He named the user friendly financial products of State Bank of Pakistan like Roshan Digital Account (RDA), restrictions on cross border travel due to the pandemic, favourable exchange rate, legalisation of undocumented Pakistani workers in Italy, Pakistan`s inclusion in seasonal work visa programme in Italy and Remittances Promotion Drive of the Pakistan Embassy In Italy as some of the leading factors that are helping remittances growth to record heights. He shared that Pakistan has been included in Italy’s Seasonal Work Visa Programme for 2022 as well that would help our semi-skilled workers to come through legal channels and work in agriculture and services sectors of Italian market.
As for Pakistan’s exports to Italy that has registered 64% growth in August 2021 year on year he mentioned that the export growth was mainly led by value added sectors like garments, leather products, home textiles and footwear. Italy is Pakistan’s 8th largest export market where Pakistan is market leader in some products such as rice. Pakistan’s share in Basmati supply to Italian market has risen to 82% whereas India supplies only 12%. Despite the false Indian claim over exclusive rights for Basmati in the EU market, Pakistan is the largest exporter of Basmati not only to Italy but the entire European Union.