Remittances rise 18% to $6.1 billion

Money flow increases as overseas Pakistanis opt for legal channels.

KARACHI: Remittances sent home by overseas Pakistanis rose 17.7 per cent in seven months of the current financial year 2010-11 as the country received $6.12 billion. This showed an increase of $919.92 million from $5.20 billion received in the same period of last year, said the State Bank of Pakistan (SBP) on Thursday.

Remittances have been continuously rising over the last three years as overseas Pakistanis opt for legal channels for sending money back home to their relatives, analysts say. This came in the wake of a government crackdown on illegal Hundi and Hawala systems of money transfer to check money laundering and terrorist financing.

Analysts say banks have also offered incentive schemes for remittances from abroad as well as a fast-track system to attract people.

The State Bank, Ministry of Finance and Ministry of Overseas Pakistanis had also undertaken a joint initiative called ‘Pakistan Remittance Initiative’ with a view to facilitating the flow of remittances through formal channels.

In addition to these, this financial year people working overseas have also sent charity money after the devastating floods in July and August last year that swept through many parts of the country, an analyst said.

Monthly average of remittances in seven months was $874 million as compared to $742.58 million during the same period last year, registering an increase of 17.7 per cent.

Published in The Express Tribune, February 11^th, 2011.