KARACHI, Oct 17: Overseas Pakistanis remitted over one billion dollars in the first quarter of the fiscal year 2005-06, strengthening the government’s hope of receiving over $4 billion by the end of the year.
The country received $1.002 billion during July-September 2005 against $983.15 million it received during the corresponding period last year, which is 1.98 per cent or $19.5 million higher.
In September this year, Pakistani workers abroad remitted $341.10 million, as against $312.94 million in September 2004, depicting an increase of $28.16 million or nine per cent.
According to the State Bank statement issued here on Monday, the amount of $1.002 billion includes $6.17 million received through encashment and profit earned on Foreign Exchange Bearer Certificates and Foreign Currency Bearer Certificates.
The monthly average remittances for the period July-September 2005 comes out to $334.22m, as compared to $327.72m during the same period last fiscal year, depicting an increase of $6.50m or 1.98 per cent.
Pakistan depends heavily on remittances to bridge the trade deficit gap which is widening because of a record increase in petroleum prices and rapid growth in the import of industrial machineries.
The initial estimate suggests that the fiscal year 2005-06 may witness a record trade deficit of $7 billion. Some analysts said that this was the estimate before the earthquake which would certainly force the government to spend more on the external front for the import of basic necessities in order to protect and rehabilitate four million displaced Pakistanis and Kashmiris. Pakistan has imported 60,000 blankets from India and more are in the pipeline. Still hundreds of thousands of tents require for sheltering the displaced people.
“Food and life-saving drugs will be needed in bulk quantity that will ultimately increase the import bill of Pakistan,” said analyst Anwar Sami. However, hopes are high on the government sector that overseas wealthy Pakistanis would send foreign exchange to help the affected people, ultimately helping Pakistan get control over the widening gap between exports and imports.
According to a government announcement, foreign countries have so far committed to providing $582 million collectively to help the people hit by the earthquake.
The break-up of remittances shows that Pakistan received from the US ($94.40 million), Saudi Arabia ($54.76 million), the UAE ($48.70 million), Gulf countries, including Bahrain, Kuwait, Qatar and Oman ($45.30 million), the UK ($38.57 million) and EU countries ($9.70 million) in Sept 2005, as compared to the corresponding receipts from respective countries during the same month last fiscal year i.e. $96.66 million, $50.87 million, $47.09 million, $40.52 million, $26.33 million and $8.77 million. Remittances received from Canada, Australia, Norway, Switzerland, Japan and other countries during September 2005 amounted to $48.5 million, as compared to $42.31 million during the same month last year.
The inflow of remittances during the first quarter from the US, Saudi Arabia, the UAE, GCC countries (Bahrain, Kuwait, Qatar and Oman), the UK, and EU countries amounted to $283.33 million, $174.32 million, $141.72 million, $130.79 million, $110.96 million and $26.85 million, respectively, as compared to $313.81 million, $158.52 million, $161.13 million, $124.75 million, $74.82 million and $24.36 million. Remittances received from Canada, Australia, Norway, Switzerland, Japan and other countries during the first quarter amounted to $128.51 million as compared to $124.14 million in the corresponding quarter last fiscal year.
