Remittances increase phenomenally during 1st quarter of current fiscal

[Lahore_Real_Estate]

KARACHI - The country’s economic managers must be jubilant over, what the central bank said, an “impressive” growth in the country’s foreign exchange sent back home by the overseas Pakistanis.
Sigh of relief:
Greatly concerned over, what the State Bank said in its Monetary Policy Decision last week, the rapidly deteriorating global economic conditions posing potential threat to the country’s exports, the economic managers might heave a sigh of relief after seeing a 25 per cent increase in remittances sent back home by overseas Pakistanis during the first quarter of current fiscal year. According to State Bank of Pakistan (SBP), Pakistanis working abroad remitted over $3.297 billion during July– September 2011-12 registering a remarkable increase of 24.60 per cent over the corresponding period last year. According to SBP data, remittances during the same quarter in FY11 amounted to $2.646 billion, marking a difference of $650.9 million when tallied with the current $3.297 billion.
Growth in remittances:
“The remittances received from all countries of the world showed growth during the first quarter of current fiscal year,” the SBP said Monday.
The central bank said during the said quarter that the inflow of remittances from Saudi Arabia, UAE, USA, UK, Gulf Cooperation Council (GCC) countries (including Bahrain, Kuwait, Qatar and Oman), and EU countries amounted, respectively, to $854.18 million, $746.62 million, $627.75 million, $369.36 million, $354.61 million and $101.73 million. The remittances from the same destinations were calculated, respectively, at $576.32 million, $621.29 million, $511.92 million, $296.89 million, $312.73 million and $84.65 million during the same period last year.
During the period under review, the remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries amounted to $242.95 million as against $242.5 million received in the same months of fiscal year 2010-11. The monthly average remittances for the July - September (2011) period comes out to $1.099 billion as compared to $882.10 million during the corresponding period of last year, registering an increase of 24.60 per cent. In September 2011, an amount of $890.42 million was sent home by overseas Pakistanis, down 3.43 per cent, when compared with $922.06 million received in the same month last year.
Inflow of the greenback:
A monthly account of remittances shows that, during September (2011) the inflow of remittances from Saudi Arabia, UAE, USA, GCC countries, UK, and EU countries were recorded at $252.56 million, $194.51 million, $169.30 million, $103.85 million, $86.91 million and $26.76 million.
This was against $175.82 million, $231.70 million, $181.24 million, $102.94 million, $103.03 million and $31.66 million the country received in corresponding month in 2010. The same month saw Pakistani workers from Norway, Switzerland, Australia, Canada, Japan and other countries sending back home $56.53 million as against $95.67 million they sent during September last financial year. This healthy inflow of the greenback on account of remittances augurs well for the dollar-hungry Pakistan, which the observers believe, is though not faced with an immediate threat of default on the Balance of Payment front, but might not be able to maintain the status quo for too long.
The State Bank data shows that the country’s current account deficit had narrowed down to $189 million from last year’s $1.016 billion during first two months of FY12. This shrinkage in the current accounts was partly attributive to healthy dollar inflows on account of exports that were made to the tune of $4.252 against $3.465 billion of corresponding period.
The analysts, however, warn against complacency saying nothing but foreign investment could only rid the heavily-indebted country of its Balance of Payment woes on sustainable basis.