KARACHI, Sept 16: Overseas Pakistanis sent back home $656.55 million during July-August this year, down from about $669 million in a year-ago period, data released by the State Bank show.

Total home remittances, including the remittances from expatriate Pakistanis as well as foreign exchange earned through encashment of and profit on foreign currency bearer certificates and foreign exchange bearer certificates, reached $661.55 million during July-August 2005, down from $670.21 million in July-August 2004.

A slight fall seen in the remittances from overseas Pakistanis in the first two months of this fiscal year is reflective of the fact that informal transfer of foreign exchange has risen again, thanks to not-so-efficient monitoring of the open currency market by the State Bank.

The SBP data show that overseas Pakistanis sent home $346.54 million during August 2005, up from $339.08 million in August 2004. Total home remittances in the last month stood at $348.41 million, up from $339.70 million in a year-ago period.

Country-wise break-up of cash remittances received from overseas Pakistanis during July-August 2005 show that the largest chunk of remittances ($188.93m) came from the US. But this was lower than what the country had received in July-August 2004 i.e. $217.15 million.

Remittances from the UAE also dropped to $93 million in July-August this year from $114 million in July-August last year. But remittances from Saudi Arabia and the UK rose to $119.56 million and $72.39 million respectively during the first two months of this fiscal year from $107.65 million $48.49 million in the comparable period of last fiscal year.

Whereas the government needs to ensure that the rising trend in remittances from Saudi Arabia and the UK continues, it should investigate thoroughly why remittances from the UAE and the US have been on the decline.

Executives of foreign exchange companies say hundi operators or those involved in illegal transfer of foreign exchange to and from Pakistan are more active in the UAE and the US than elsewhere.

They say that the remittances from the UAE, particularly from Dubai have also fallen because expatriate Pakistanis are being lured into making investment in the real estate there. Remittances from Dubai fell to $70.26 million during July-August 2005 from $86.37 million in July-August 2004.

Executives of foreign exchange companies say some local businessmen having big stakes in the real estate market of Dubai have been attracting remittances from overseas Pakistanis there through informal channels. They say that such businessmen, mostly in gold and money exchange business, are then repatriating the same to Dubai in the name of investment in real estate there. The Central Board of Revenue has started investigating the nature of such investment.