KARACHI, Aug 17: Political uncertainty in Pakistan did not shake up confidence of overseas Pakistanis who remitted about half a billion US dollars to their homeland in July 2007 which was remarkably higher than the July of previous fiscal.

While the inflow of foreign exchange has always been given a hot welcome, the recent boost of remittances inflows in July by 31.5 per cent must be a very good sign for the government going to face general elections along with a host of political disputes.The State Bank said on Friday that remittances sent by overseas Pakistanis reached $495.69 million in July 2007 which was 31.48 per cent higher than the corresponding month of the previous year.

Remittances sent from the US were the highest compared to other countries and had been highest during the fiscal 2006-07. Pakistanis sent $127 million in July from America.

After the series of incidents including suicide bombings in the country and political upheavals, economists and analysts have started showing doubt over the smooth inflow of foreign direct investments and remittances from overseas Pakistanis.

“July is just a beginning of new fiscal and still serious changes at the top of the government are expected through elections and that would set the future trend of the forex inflows,” said Amri Salee, an analyst.

He said the next six months would shape up the future of both the external and domestic investments and both are interlinked.

Pakistan received record foreign direct investment, portfolio investment and overseas workers remittances. The huge inflows helped the country to meet ever increasing trade deficit and current account deficit.

The State Bank says that the inflow of remittances into Pakistan from almost all countries of the world increased in July. The country received about $5.5 billion during the last fiscal as workers remittances.