By Ishfaq A Mughal
Despite the prevailing energy shortage and law & order situation in Pakistan, a good news came from export and remittances fronts that both sectors showed tremendus achievements in March and touched the highest level of any one-month in the country's history in respectives side.
The Pakistani authorities estimated export target $24 billion for the current fiscal year (July-June). The country’s exports had also broken the record of one-month export with $ 2.39 billion in December 2010.
The Federal Board of Revenue (FBR) , issued provisional trade figures on Satureday. According to the figures the country’s trade deficit surged by 2.79 percent in March 2011 to $920 million as against $895 million over February 2011.
The exports reached at $2.49 billion which is the highest level of any one month in the history of Pakistan. The county’s export increased by 15.71 percent in March as compared to the last month of current fiscal year. The country’s imports surged by 11.92 in the said period and reached at $3.417 billion in March, said FBS.
Due to better performance of export sector of the country, the trade deficit for the first nine months (July-March) of the current fiscal year was slightly increased and reached at $11.217 billion, compared with $11.03 billion deficit in the same period of the last fiscal year.
A growth of 26.49 per cent was witnessed in the county’s export proceeds during first nine months as these increased to $17.799 billion from $14.072 billion as against the same period of the last fiscal year.
Over-all volume of imports recorded a growth of 15.57 per cent from $29.016 billion from $25.107 billion over the corresponding period of last fiscal.
The robust growth in exports was reported on the back of consistent efforts of exporters despite the pertaining shortage of energy, law and order situation and floods devastation.
Increase in commodity prices, especially cotton prices in the international market, also pushes up overall volume of exports from the country.
The import bill is likely to go up followed by surging oil prices in international market. The government would also import food products to bridge the shortfall in certain crops this year. As a result, the over-all import bill would increase in future.
Remittances reached historic level
On the other side, overseas Pakistani workers remitted a historical amount of $1,052.88 million in March 2011 as against $763.72 million in the same month of the last fiscal year, showing a tremendous jump of $289.16 million or almost 38 percent. This is the first time in country’s history when worker’s remittances have crossed the $1 billion figure in a single month. The previous highest amount remitted in a single month by Pakistani workers was recorded in August 2010, when they sent home an amount of $ 933.06 million.
Pakistani workers remitted an amount of $8,016.16 million in the first nine months (July-March) of the current fiscal year 2010-11, showing an increase of $1465.33 million or 22.37 percent when compared with $6,550.83 million received over the same period of the last fiscal year. The amount of $8,016.16 million remitted in country in July-March 2011 includes $0.03 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).
The monthly average remittances for the July-March 2011 period comes out to $890.68 million as compared to $727.87 million during the same corresponding period of the last fiscal year, registering an increase of 22.37 percent.
The government estimated target of worker’s remittances in the Annual Plan for FY11 was around $9 billion, the remittances sent home by overseas Pakistanis during the first nine months of the current fiscal year have crossed the $8 billion mark.
It may also be pointed out that the State Bank, Ministry of Finance and Ministry of Overseas Pakistanis had undertaken a joint initiative called ‘Pakistan Remittance Initiative (PRI)’ with a view to facilitating the flow of remittances through formal channels. This initiative has started to materialize and remittances through formal channels are showing considerable growth.
The performance of both sectors would positive impact on the current account front and it will be helpful for reduction of current account deficit during the current fiscal year. Currently, the current account front of the county is under pressure and the government is trying to narrow its gap.
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