KARACHI, Jan 16: Remittances by the overseas Pakistanis have gone up by 25 per cent during the last six months while the inflows from the Middle East increased substantially to contribute 48 per cent of the total remittances.

The latest official data of inflows showed that United States was the country of the highest remittances for Pakistan while the Middle East sent 35.5 per cent more foreign exchange compared to the six months of the previous year.

The country received a total $2.568 billion during July-December 2006, an increase of 24.95 per cent against $2.055 billion the country received during the same period of last year.

The inflows have increased the chances that by the end of fiscal 2006-07, the country would receive over $5 billion, which could be a vital help to the government struggling to fight the ever-increasing trade and current account deficits.

The figures also showed that the Middle East including Saudi Arabia, the UAE and the GCC countries responded more strongly and their share increased from 44 per cent of the total remittances of last year to 48 per cent this year.

The monthly average remittances for the period July-December, 2006 comes out to $428 million as compared to $342.53 million during the same period of the last fiscal year registering an increase of about 25 per cent.

During last month (December, 2006), the workers remitted $475.21m as against $371.24m in December, 2005 depicting an increase of $103.97m or 28.01 per cent.

The total amount of $2,568.02 million includes $1.34 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).

The inflow of remittances during the first half of the current fiscal year from USA, Saudi Arabia, the UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $659.27 million, $483.32 million, $397.03 million, $358.58 million, $218.67 million and $74.89 million, respectively. Remittances received from Canada, Australia, Norway, Switzerland, Japan and other countries during the first half of 2006 amounted to $374.92 million as compared to $286.20 million in the corresponding period of the last fiscal year.

The inflow of remittances into Pakistan from all countries of the world increased last month as compared to December, 2005.

According to the break-up, Pakistan received workers’ remittances during December, 2006 from USA ($125.81 million), Saudi Arabia ($84.33 million), UAE ($78.91 million), GCC countries - including Bahrain, Kuwait, Qatar and Oman ($67.11 million), UK ($38.57 million) and EU countries ($12.32 million).

Remittances received from Canada, Switzerland, Australia, Norway, Japan and other countries during December, 2006 amounted to $67.99 million as compared to $64.57 million during December, 2005.