KARACHI, Aug 13: Pakistan received record remittances in the first month of this fiscal year providing strength to the foreign exchange reserves amid massive debt repayment to the IMF.

The State Bank said on Tuesday that overseas Pakistanis remitted $1.404 billion in July 2013 compared to $1.204bn sent back home the same month last year, a growth of 16 per cent.

The growth in remittances was due to Ramazan as additional amounts were sent back by them for Zakat, charities and Eid related expenses of their families.

While the remittances have been increasingly supporting the country’s weakening foreign exchange reserves, the repayment to IMF has once again slashed the improvement.

The central bank said the country paid the 17th installment under IMF-Standby Agreement facility amounting to SDR 95.8 million or equivalent to $145.3m.

With the repayment of current installment, Pakistan has repaid to IMF SDRs 2.965bn ($4.517bn) since July 2011, of which SDRs 2.481bn ($ 3.773bn) under SBA facility.

The new government is negotiating with the IMF for another package of loans worth more than $6bn and a meeting is due in September to finalise the loans.

However, the government has yet not disclosed the conditions that would make Pakistan eligible for the loans.