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Pakistanis remit record $14 billion

Updated Jul 11, 2013 01:35pm
Remittances grew by 5.5 per cent– AFP (File Photo)
Remittances grew by 5.5 per cent– AFP (File Photo)

KARACHI, July 10: Pakistan received record $14 billion remittances from overseas Pakistanis during the fiscal year 2013.

The State Bank reported on Wednesday that the country received $13.920 billion remittances from overseas Pakistanis in the fiscal year 2013 as compared to $13.1bn received in FY-12.

Though growth was not as high as of last year, it was still higher by about $800 million compared to last year, a growth rate of 5.5pc. In FY-12, remittances grew by 17.7pc.

The highest amount was received from Saudi Arabia which was 29.5pc of the entire remittances.

Overseas Pakistanis sent $4.104bn in the last fiscal year till June 30.

However, a major increase in remittances was noted from UK as Pakistanis remitted 28pc more than the previous year. Pakistanis from UK sent a total of $1.607bn during FY-13.

Remittances from some important destinations declined during the fiscal year. One of the biggest trading partner, UAE showed decline in remittances.

Pakistanis sent a total of $2.75bn, a decline of $98m compared to the previous year.

It also declined from the US, which noted a fall of $148m for a total inflow of $2.186bn during FY-13.

The huge inflow of about $14bn is the biggest aid the government got from overseas Pakistanis. The widening trade deficit and sharply shrinking foreign exchange reserves forced the government to approach the IMF for loans to avoid any possibility of default on the external front.

The State Bank’s report showed that during the 11 months of the FY-13, the current account deficit was $1.952bn which was still not alarming compared to the previous year.

However, in the wake of falling reserves, situation became alarming which badly hit the exchange rate.

The uncertainty over future reserves and unclear position on loans played a key role in slashing the rupee value.

The rupee declined by 5.5pc in FY-13 but it continues to decline in the fiscal year 2014, which has just begun.

According to the State Bank, monthly average remittances for July-2013 stood at $1.16bn compared to $1.098bn during the corresponding period of the last fiscal year.

In June, an amount of $1.164bn was sent home by overseas Pakistanis, up by 4.23pc, compared with $1.117bn received in the same month of 2012.

Balance of trade saw a rising trend during the last fiscal year, reflecting a more serious situation, particularly when foreign exchange reserves were in a poor state.

During the 11 months, balance of goods and services was $17bn.

The remittances of $14bn helped the country keep the current account deficit in a manageable limit.