The overseas Pakistanis sent back home over $5.239 billion during first five months, July–November 2011, of the current fiscal year, central bank has reported. This, the State Bank said, shows an ‘impressive’ growth of 18.33 per cent or in monetary terms $811.69 million compared to $4.428 billion the country received during the corresponding period during last financial year, July-November 2010. Dollar inflows on account of remittances received from across the globe witnessed an upward trend during period under review, SBP said.
Inflow of remittances in July-November 2011 from Saudi Arabia, UAE, USA, GCC (Gulf Cooperation Council) countries, including Bahrain, Kuwait, Qatar and Oman, UK, and EU countries amounted, respectively, to $1.364 billion, $1.167 billion, $975.12 million, $600.04 million, $594.30 million and $160.26 million. The same months last year had seen an inflow of $935.76 million, $1.045 billion, $841.32 million, $530.30 million, $496.09 million and $147.57 million from these destinations. The remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries were counted at $378.66 million as against $431.93 million received during the first five months of FY11.
The monthly average remittances for the July-November period comes out to $1.048 billion compared to $885.66 million during the corresponding period of last fiscal year. This figure marks an upsurge of 18.33 per cent over last year. During last month in November, the overseas Pakistanis sent back home $924.92 million, down 0.21 per cent, when compared to $926.89 million received during the same month last year. The said month saw remittance inflows from Saudi Arabia, UAE, USA, GCC countries, UK, and EU countries accumulating to $218.98 million, $204.13 million, $179.77 million, $113.89 million, $107.38 million and $30.45 million, respectively. This was against the last year’s respective inflows of $171.45 million, $225.75 million, $175.05 million, $113.39 million, $102.85 million and $30.50 million. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the month of November were counted as $70.32 million compared to $107.9 million of the last corresponding period.
The analysts view remittances as the sole indicator on the current account list setting in the green zone with all others deteriorating, thus pushing the cash-strapped country deep into financial crisis. With foreign financing fast zeroing due to Islamabad’s ongoing stratego-diplomatic tussle with its Western allies plus its failure to take the IMF-backed economic reforms, the country’s current account deficit widened during July-Oct FY12 to an unpalatable level of $1.55 billion against $541 million of the corresponding period in FY11. Major stimulus behind this gap is believed to be trade deficit that for the review period accumulated to $ 5.281 billion, up 40 per cent compared to FY11’s $ 3.773 billion.
While economic managers appear to be unwary of the foreseeable alarming situation ahead, the economic observers press the need for an economic contingency plan to cope with the challenges the crises-hit country is fast heading to face on the economic front.
