KARACHI, March 18: The State Bank said on Tuesday foreign exchange inflows through banks rose to $2.874 billion in the first eight months of the current fiscal year from $1.399 billion in the same period a year earlier.

Bankers said investigations into global money-laundering had prompted more expatriate Pakistanis to send money home through official banking channels. The higher remittances were boosting foreign exchange reserves.

The central bank said in a statement the amount remitted in February 2003, was $342.77 million, up from $233.85 million in the same month last year.

“Out of total remittances of $2.874 billion received in the country from July 2002 to February 2003, workers’ remittances contributed $2.745 billion as against $1.313 billion during the corresponding period of last year,” the central bank said.

Bankers expected foreign exchange inflows to continue rising in the current fiscal year because of tighter international monitoring of money transfers.

An SBP spokesman said on Monday Pakistan’s foreign exchange reserves were $10.27 billion. He said the central bank’s direct holdings were $9.06 billion and commercial banks’ $1.21 billion.—Reuters