year high inflation in the Kingdom mixed with soaring prices in expatriates' home countries is seemingly breaking the backbone of expat workers here. South Asian expatriates are plummeting under inflation as they also send remittances to their families who are dependent on them, in countries also hit hard by inflation. The amount that once used to suffice daily expenditure is now proving to be inadequate for these families backhome. Yasir Humidi, a Pakistan survey official said the Pakistan Economic report 2008 stated that foreign remittances to the country have decreased at the rate of 20 to 25 percent. Inflation in the largest Arab economy, which pegs its riyal currency to the US dollar, hit 10.5 percent at least a quarter century peak as rents surged 16.7%, the repercussions of which are being felt on Indian and Pakistani rupee currency valuation. According to the yearly report, Saudi Arabia's money supply grew at 23.9 percent in January 2008; it's highest in at least four years, signalling that inflation in the Kingdom could climb further from the 25-year peak. Statistics in the report suggest that prices of consumer commodities have more than doubled since last year. For instance, milk costs 40 percent more while prices of fruits and vegetables are wavering. “House rents in different localities of Jeddah have increased by 30 percent and that of newly constructed buildings by 40 to 45 percent,” Humidi said. Tahir Hashmi, a media executive in an advertising company, sends SR2000 per month to his parents and three younger brothers in India. “Due to high prices back home, I have to send more money to them; this is proving difficult as my own expenses have increased,” he said. Hashmi said the situation has changed for the worse. “Now high house rents and children's fees have made things bad for us; we are planning to go back to India,” he said. “I am living in the Kingdom for the last 20 years but I never felt as pressured under the current inflation which is an all-time high,” Aslam Farooqui, a Pakistani senior account executive said. He said an average expatriate's foreign remittance to native countries has decreased to an extent. “We love this country and we don't want to leave it, but living here poses many hardships for us,” he said. The Kingdom is home to more than two billion Indians and Pakistanis. Naureen Talat Arooba, whose three daughters are in Pakistan, said these have been difficult times for her and her daughters. “My daughters have to manage by all means as we are unable to send them any extra money, apart from that for their basic needs,” she said. Aftab Sohail, another expatriate accountant said his salary is now not enough to cover all expenses of his wife and children. “So how should I send money back home to my parents who have no other financial means.” Some expatriate families are considering returning to their native places. There, they say, they have at least the consolation of living with their family and relatives. “The joint family system back home is a boon when it comes to expenses. Finances are shared between family members, which eases pressure on one individual,” Sohail said. Last year Saudi government employees received a pay hike of 15 percent. However, policies show that expatriates have not received an increase in their salaries as compared to that of their Saudi counterparts in government sectors. __
