In December 2015, a World Bank report published by the Wall Street Journal left many in India alarmed.
The report released revealed that Pakistanis sent $4.67 billion in 2012, $4.79 billion in 2013 and $4.90 billion to India in 2014 – figures that were increasingly going up each year.
So how is this even happening?
In a report published on February 25, the WSJ quotes economist Dilip Ratha, manager of World Bank’s migration and remittances development prospects group, saying that the money flow is between family and friends in the two countries.
Ratha’s logic is based on the fact that there are around 1.4 million India-born people living in Pakistan and 1.1 million Pakistan-born people in India.
Yet the figure is not just astounding but also alarming because it is higher than the remittances India receives from its increasingly growing migrant labour force in Kuwait and Qatar.
The question therefore remains as is: How is the money flowing in? Ratha himself said that the friends and family logic is World Bank’s best guess. So it is just a guess, at the end of the day.
Hawala is the route sponsors of terrorism take to finance their nefarious activities in other countries.
One must note here that money coming from Pakistan can be used to finance terror in India, and that is not an exaggeration. Pakistan is also the source of fake currency flooding Indian markets.
Sanchita Bhattacharya did an extensive research on how Pakistan’s weak economic situation and loopholes in security enables terror sponsors to use hawala, ransom, narco trade and dubious charitable organisations as routes of money transfer.
Obviously, India NEEDS to be concerned about the increasing money flow from Pakistan.