Workers send $5.3b homewards

KARACHI – The country’s foreign remittances continue to sustain a positive trend as overseas Pakistanis transmitted over $5.291 billion homewards, during the first half of current fiscal year. According to State Bank, the remittances sent home by Pakistanis overseas during July-December 2010-11 were up by 16.80 percent or $761.23 million compared to $4.530 billion in the last corresponding period. Analysts like Naeem Rafi of Rafi Securities Limited attribute the trend in foreign remittances with soaring inflation-pushed demand for money at home and the fears of Pakistanis in keeping their money in Western countries.
The central bank, however, attributes the soaring workers remittances to a joint initiative called ‘Pakistan Remittance Initiative (PRI)’ that the bank claimed had facilitated the flow of remittances through formal channels. “This initiative has started to materialise and remittances through formal channels are showing considerable growth,” the bank said. The central bank on Tuesday revealed that during the period under review, the monthly average of remittances came out to $881.90 million compared to $755.04 million the same time last year, registering an increase of 16.80 percent.
During the period, it said, inflow of remittances from UAE, Saudi Arabia, USA, Gulf Cooperation Council (GCC) countries, including Bahrain, Kuwait, Qatar and Oman, UK and EU countries amounted to over $1.255 billion, $1.143 billion, $997.68 million, $626.29 million, $577.17 million and $172.10 million, respectively in comparison to $1.021 billion, $845.91 million, $938.40 million, $642.45 million, $482.79 million and $142.79 million of July-December 2009-10. Workers remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first half stood at $518.69 million as compared to $454.94 million in the same period last year, it added. In December 2010, the State Bank said, the overseas Pakistanis sent home some $863.11 million, up 23.72 percent or $165.51 million when compared with $697.60 million received during the same month last year.
A region-wise breakup shows that during last month of 2010 the remittances from United Arab Emirates, Saudi Arabia, USA, GCC countries UK and EU countries were calculated, respectively, at $210.33 million, $208.06 million, $156.36 million, $95.99 million, $81.08 million and $24.53 million.
During December 2009-10 remittances sent home from the same regions stood at $167.67 million, $137.56 million, $141.22 million, $97.57 million, $74.30 million and $18.89 million.
Pakistanis working in Norway, Switzerland, Australia, Canada, Japan and other countries remitted some $86.76 million during December 2010 against $60.33 million in the same month last year.
The central bank terming the PRI a major attributive factor for the growth in foreign remittances and pointed out that Pakistan remains a recipient which has shown the highest growth in remittances, despite the global financial crisis.