KARACHI, May 18: Overseas Pakistanis sent home $3.452 billion in 10 months to April this year, up from $3.211 billion in a year-ago period, says a State Bank press release. The remittances in July-April 2004-05 are thus higher by $241 million or 7.5 per cent from the remittances received in July-April 2003-04.

In the month of April 2005 Pakistan received $401 million from its expatriate citizens up from $335.3 million in April 2004 — an increase of $65.7 million or 19.6 per cent. The monthly average remittances during July-April 2004-05 stood at $345.1 million up from $321m in July-April 2003-04.

The inflow of $3.452 billion in 10 months to April this year indicates that full fiscal year inflow would easily reach $4bn, up from $3.8bn in the last fiscal year. But as Pakistan’s trade deficit is rising very rapidly and is estimated to reach $6.5 billion at the end of the current fiscal year, even $4 billion remittances and an estimated $1.3 billion foreign investment would be fall short in financing it.

However, an anticipated inflow of $4bn remittances during this fiscal year in continuation of $3.8 billion remittances last year indicates that Pakistan’s external account is getting strengthened. As for a huge estimated $6.5bn trade deficit during this fiscal year up from that of $3bn in the last year, what has expanded the deficit is a big jump in import of machinery, fuel, chemicals and fertilizers etc., which shows the economy is growing fast. Besides, a dramatic surge in international oil prices has also taken its toll on the import bill and thus contributed to increase in the trade deficit.

According to SBP press release, remittances from expatriate Pakistanis in the USA, the UAE, and Saudi Arabia, GCC countries and the UK and the EU contributed heavily to the overall inflow of $3.452 billion in 10 months to April.