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.

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Comments (3)

August 14, 2013 7:28 pm

Don't bury us under the loans. Start reducing them not borrowing more and more.

August 15, 2013 9:16 am

Pakistani economy is now running on overseas charities, foreign donations and zakat.

The Failed Rebel
August 15, 2013 1:23 pm

I don't understand the purpose of more loans. Already, the inflation is sky-high and these infidels continue to vandalize the country with their failed policies.

I hope that these buffoons are taken out of their homes and slain on the streets by the very people they fed on.

Pakistan is in dire need of a brutal revolution which will eliminate all the monarchs. Military, Politicians, Industrialists alike.

Unfortunately, I am a very short sighted, uneducated individual. I see no other way of purifying the state, because what burns inside this rebel are flames of the empty stomachs of the poor.

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