8% in 2019, according to the World Bank.
Personal remittances, received (% of GDP) - Pakistan | Data That's a lot. It's almost as much as total exports - 8.8%, also according to the World Bank. Imports - 19.75%. Imagine trying to finance all those imports without any remittances.
% of GDP isn't the most important measure. % of foreign currency earnings is what you should look at, because without foreign currency you can't import.
So . . you think being dependent on China is a good thing. Given the trustworthiness of the current Chinese government, I'm not sure that's much better than being dependent on a hungry tiger. Chinese favours will have to be repaid one day.
It is peanuts in greater scheme of things. Yes, Pakistan will miss some much needed inflow of cash. In the immediate term this would hurt a little. In the longer term, this will be beneficial. Let's be blunt here. GCC relations with Pakistan are quite exploitative in nature. Pakistan would do well by taking a more neutral approach and putting regional alliances with Iran and China at the top of the list. Luckily this is already happening in the shape of CPEC. In the long run, regional trade could easily surpass the meagre 5 billion remittance inflow. There is not a comparison between trade and aid/loan/remittance.
Again, the amount of suffering and humiliation the workers have to endure is a reason in itself to stand on your own feet. It is pure exploitation.
I for one am happy to see some cracks in the GCC Pakistan relations. GCC nations have a strong relation with the Western bloc. Often much of their interests and demands are tied with Western interests. That is not benificial for developing nations. Will it benefit India at the cost of Pakistan? Probably. So be it. Pakistan too has the option of investing in regional relationships. Something which should have happened ages ago anyway.
Western perspective of China versus Chinese perspective in the developing world are different. There is a day and night difference. We don't view China as hostile or untrustworthy. The West has a specific reason to paint China as a terrible nation. We understand what that specific reason is. China is a new rising power and the established powers don't approve. We are not part of this great game. We will accept Chinese investment with open arms. Especially considering that China has the expertise to deliver. For us it is a win win situation. We get massive infrastructure, energy and various other projects in return. No, we don't believe that Chinese loans are a debt trap. The Chinese loans are as much a debt trap as WB, IMF or Western loans. All loans have to be repaid. We don't diffentiate between Chinese and Western loans. In fact, Chinese loans often come with no strings attached and are easier to repay i.e. soft loans. Western loans on the contrary are often attached with many conditions. Conditions which are often deemed detrimental for national security and well-being.
All developing nations have to be dependent on one or the other major powers of the world. That is just the way the system works. If I have to pick and choose my money is with China. Unfortunately, past experience with Western aid/loan for many developing nations is not encouraging. Often the aid/loan doesn't reach the intended recipients. The money disappears with elite rulers who flee to Western capitals. Sometimes the money is used as bribe. Chinese investment is visible and the results are mostly tangible. I see new roads, houses, energy reactors, windmills, deep sea ports etc.
Is China here for charity? Of course not. The Chinese are here for return of investment. Are Western nations here for charity? Of course not. The Western countries are here for return of investment. Is return of investment a bad thing? Of course not. As long as the host nation also benefits in some form. Developing nations are simply opting for the most effective option. China wins. Nothing more nothing less.
We are not afraid of repaying favors. We will gladly repay China for trusting in Pakistan at a time when our so-called allies turned a blind eye. The last time Pakistan paid favors after allying with the West and the US during the Cold War is something we won't forget. We have indeed learnt an important lesson and we are not going to repeat that mistake again.
I fully comprehend Western frustration. The West is losing a lot of clout in the developing world because China is winning hearts and minds. It makes sense for the West to be alarmed by Chinese rise.
This foreign policy about turn has cost the Pakistani economy more than US$5 billion in remittances, which is much needed foreign currency, and now an additional 1.2 million unemployed Pakistanis have been added to an economy which is in dire straits. A great idea - not.
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