Remittances maintain momentum

Dawn

KARACHI: Overseas Pakistanis remit $12.77bn during the seven months of the current fiscal year up 12 per cent from the $11.38bn received during the same period last year, reported the State Bank of Pakistan on Monday.

Major growth was witnessed in the inflows from the US and the UK at 33pc and 22.5pc respectively; however, Saudi Arabia emerged as the leading contributor to the total tally.

Currency experts said the overseas Pakistanis are sending higher amount to buy properties or to meet the increased cost of living in the country.

During January, the inflow of workers’ remittances amounted to $1.743bn down 0.3pc from the sum received in the month of December last year.

Doha’s offer to provide 100,000 jobs to Pakistani laborers could significantly increase the inflow of remittances in the country however the government is currently negotiating the terms of the agreement with Qatar. With inflows from Qatar reaching just $224 million during the period under review, the numbers are likely to increase significantly, if the two countries agree on the ongoing negotiations.

Though, inflows from Saudi Arabia increased by a meager 1.9pc in seven months, the peninsula emerged as the leading contributor to total remittances, with workers form the country sending $2.971bn to Pakistan.

Inflows from the UAE, second largest contributor, were recorded at $2.7bn during the period posting 7.5pc growth.

Remittances from the US registered highest growth of 33pc, with total inflows reaching $2.5bn up $1.2bn from the same period last year. Inflows of the UK, on the other hand, increased by 22.5pc to reach $1.942bn.

Cumulatively, remittances from Gulf Cooperation Council and the European Union countries noted a decline of 7pc and 4pc respectively.