KARACHI: The first month of the new fiscal year saw over 17 per cent more remittances compared to the same period of last year, the State Bank reported on Tuesday.

The ever-increasing remittances are now the biggest support to the economy which helps to reduce the huge trade deficit and dilute the impact of the current account deficits.

The State Bank reported that the overseas Pakistanis sent $1.649 billion in July which was 17.45 per cent higher than July 2014.

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Pakistanis had sent $15.83bn in FY-14 which not only helped the country continue to payback the debt to IMF but supported the ex­­change rate to gain strength against the US dollar.

Currency experts said if remittances kept growing with a rate of 17pc, the country could get more than $18bn at the end of the current fiscal year.

The inflow of remittances during July 2014 from Saudi Arabia, UAE, US, UK, GCC countries (including Bah­rain, Kuwait, Qatar and Oman) and EU countries amounted to $454.47m, $352.89m, $257.08m, $247.96m, $179.76m and $44.32m, respectively, compared with the inflow of $410.73m, $252.41m, $233.06m, $221.93m, $161.44m and $38.59m respectively in July 2013.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the last month amounted to $112.91m as against $86.23m received in the same month of the last fiscal year (FY14).

Published in Dawn, Aug 13th, 2014