Pak remittances surge to all-time high of $11 B

The State Bank of Pakistan (SBP) has announced that remittances sent home by overseas Pakistani workers crossed the $11 billion mark for the first time in the country’s history during the last fiscal year 2010-11.

Expatriate workers remitted a record amount of $11.20 billion during the year, an impressive growth of 26 per cent or $2.29 billion, compared with $8.90 billion received in the previous fiscal year, SBP said. The target for remittances in the Annual Plan for FY11 was around $9 billion. Giving one of the reasons for the sharp increase in remittances, the central bank said a joint move called Pakistan Remittance Initiative by SBP, the Ministry of Finance and the Ministry of Overseas Pakistanis had facilitated the flow of remittances into the country through formal channels.

The last month of the fiscal year (June) alone, the remittances stood at $1.10 billion, the highest-ever amount sent home in a single month and the fourth month in a row when remittances crossed $1 billion. The figure was 31 per cent or $263.12 million higher from $841.44 million received in the same month in 2009-10.

This was the fourth consecutive month when Pakistanis abroad remitted over $1 billion. They had remitted $1.052 billion, $1.030 billion and $1.049 billion in March, April and May, respectively.

The inflow of remittances in July-June 2010-11 from Saudi Arabia, UAE, USA, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $2.67 billion, $2.60 billion, $2.07 billion, $1.31 billion, $1.20 billion and $354.76 million respectively. Remittances from Norway, Switzerland, Australia, Canada, Japan and other countries amounted to $1 billion against $811.04 million received in the preceding year.

An analyst said the narrowing of the difference between currency exchange rates of inter-bank and open markets and political instability in the Middle East over the last six months also contributed to the increase in remittances. They said that the record performance was due to disturbance in Arab World which forced the Pakistani workers to remit their savings to the homeland.