KARACHI, Aug 17: Pakistani workers abroad sent back home about $330 million in July this year, up 10 per cent from $300 million in July last year. Data released by the State Bank on Tuesday show that Pakistan received $329.9 million net workers remittances in July 2004 up from $300.17 million in July 2003.

The data show that a big rise in the remittances from the US pushed up overall workers remittances or foreign exchange sent back home by overseas Pakistanis. Pakistan received $104.64 million in workers remittances from the US in July 2004 up 31.5 per cent from $79.56 million it had received in July 2003. Bankers and stock brokers say that the US- based Pakistanis sent back home higher amounts of foreign exchange to invest part of them in stock market and real estates.

Some bankers and executives of foreign exchange companies link a higher inflow of workers remittances from the US to a change in perception of the US-based Pakistanis about prospects of future growth in Pakistan economy.

Larger forex inflows from America can also be linked to fresh panic-driven transfers in anticipation of closer monitoring of bank accounts of the US-based Pakistanis in the ongoing US-led "war on terror".

The inflow of around $330 million workers remittances in the first month of this fiscal year has brightened the possibility that the full-year remittances may cross the initial estimate of $3.5 billion.

In the last fiscal year the country attracted more than $3.8 billion through workers remittances - the largest amount of foreign exchange after exports that reached $12.3 billion mark.

The data show that workers remittances from some other major centres also went up in July 2004 compared to July 2003. The remittances rose from $47.97 million to $53.07 million from the UAE; from $21.85 million to $27.47 million from the UK and from $13.68 million to $16.51 million from Kuwait.

But the remittances from Pakistanis based in Saudi Arabia fell from $60.67 million in July 2003 to $54.55 million in July 2004. What made it possible for Pakistan to attract a higher amount of workers remittances last month was a narrow gap between the inter-bank and open market exchange rates. Executives of exchange companies say that the gap remained range bound between 50-60 paisa per US dollar.

A higher spread between the official and open market exchange rates serves as an incentive for those who transfer money back home from overseas through unofficial channels.

Towards the end of last fiscal year an increase in the spread between the two rates had slowed inflow of workers remittances particularly from the UAE - where a number of hundiwalas or those handling unofficial inflows of foreign exchange operate. Workers remittances from the UAE had fallen by about 29 per cent to $597.5 million in FY04 from $837.8 million in FY03.