KARACHI, Sept 18: The inflow of remittances further increased and overseas Pakistanis sent just below $1billion during the first two months of the current fiscal.

Figures issued by the State Bank showed that the two-month remittances grew by 21.35 per cent, reflecting confidence of Pakistani workers on economy despite prevailing political instability and deteriorating law and order situation in the country.

Remittances reached $985.20 million in the first two months (July-August 2007) of the current fiscal year 2007-08, showing an increase of $173.35 million or 21.35 per cent over the same period of last fiscal.

The monthly average remittances for July-August come to $492.60 million as compared to $405.93 million during the corresponding period of last fiscal, registering an increase of 21.35 per cent.

During the last month (August 2007), Pakistani workers remitted an amount of $489.51 million, up $54.67 million or 12.57pc when compared with an amount of $434.84 million sent home in August 2006.

The amount of $985.20 million includes $0.42 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).

US, Saudi Arabia and UAE remained on top of the list from where highest remittances were sent to Pakistan. A total of $265 million were sent from US, $202 million from Saudi Arabia and $156 million from UAE.

The inflow of remittances into Pakistan from most of the countries of the world increased last month as compared to August, 2006.

High growth in remittances is one of the most important and powerful factor of the country’s economy which has to face a trade deficit of over $13 million and current account deficit of about $7 billion.