Abstract/Description
This paper attempted to estimate the impact of withdrawal of TTC reimbursement on remittances inflowing from the KSA into Pakistan. For this purpose, we have used difference in difference (DID) technique on data from July 2018 to September 2022. Our estimates suggest that this policy led to a decline in the remittances inflows from KSA on average between US$ 31 million to US$ 76 million in each month. From policy perspective, Government of Pakistan needs to review this policy of reimbursement on remittances inflowing from KSA. Our results appears robust to various changes in estimation framework.
Keywords
Pakistan, Remittance inflow, Policy Impact, Covid-19, Panel data
Location
MCC-15, AMAN-CED, Second Floor
Session Theme
2D: Inflation, Debt and Remittances
Session Type
Parallel Technical Session
Session Discussant
Zulfiqar Hyder, State Bank of Pakistan (SBP), Karachi
Start Date
17-11-2023 11:50 AM
End Date
17-11-2023 1:20 PM
Recommended Citation
Omer, M. (2023). Evaluating the impact of withdrawal of Telegraphic Transfer (TT) charges reimbursement on the remittances from the Kingdom of Saudi Arabia (KSA). CBER Conference. Retrieved from https://ir.iba.edu.pk/esdcber/2023/program/32
Evaluating the impact of withdrawal of Telegraphic Transfer (TT) charges reimbursement on the remittances from the Kingdom of Saudi Arabia (KSA)
MCC-15, AMAN-CED, Second Floor
This paper attempted to estimate the impact of withdrawal of TTC reimbursement on remittances inflowing from the KSA into Pakistan. For this purpose, we have used difference in difference (DID) technique on data from July 2018 to September 2022. Our estimates suggest that this policy led to a decline in the remittances inflows from KSA on average between US$ 31 million to US$ 76 million in each month. From policy perspective, Government of Pakistan needs to review this policy of reimbursement on remittances inflowing from KSA. Our results appears robust to various changes in estimation framework.
