KARACHI, Nov 18: Though the inflow of overseas workers’ remittances has increased by 4.34 per cent during July-October, 2005, the earthquake-hit Pakistan expects much higher inflows as its forex reserves have started melting and dollar spending is growing faster than ever.
According to the State Bank’s latest information, the country received $1.375 billion in first four months of the current fiscal.
The monthly average of remittances inflows for the period of July-October, 2005 comes around $343.79 million as compared to $329.49 million. October was the best month in terms of remittances as the inflow increased from all over the world.
However, the country requiring external assistance to meet the challenges emerging out of the earthquake, was making efforts to gather over $5 billion from the foreign countries and international organizations. The government is holding a donor conference on Saturday to seek help for reconstruction and rehabilitation of over four million displaced people in its northern part.
“If the government fails to muster world support as per its expectations, it would have to face tremendous pressure on its expenditure,” said an analyst.
The government succeeded to convince the World Bank and Asian Development Bank that the cost of reconstruction and rehabilitation in the quake-hit areas would be $5.2 billion.
Analysts believe that if Pakistan receives even half of its expected $5.2 billion from the donors, it would help Pakistan to save it from huge trade deficit and help it to minimize the balance of account deficit.
