Remittances worth $1.03b received in April

Target of $9 billion for FY11 met in 10 months.

KARACHI:

Overseas Pakistanis remitted $1.03 billion in April 2011, the second consecutive month that the figure has crossed the mark of $1 billion, data released by the State Bank of Pakistan showed.

Remittances sent home by expatriate Pakistani workers have already crossed the $9 billion target set for FY11 as they have reached $9.05 billion in the first 10 months (July-April), showing an increase of $1.74 billion or 23.81 per cent compared with $7.31 billion received in the same period last year.

In March, $1.05 billion was sent home by expatriate workers. In the last fiscal year, overseas Pakistanis had remitted nearly $8.91 billion.

The monthly average of remittances for the July-April period comes to $904.66 million compared to $730.66 million in the same corresponding period of last year, registering an increase of 23.81 per cent.

External account to remain in comfortable position: Analyst

Topline Securities CEO M Sohail termed the continuous increase in remittances a positive sign, saying it will help the national economy in a number of ways. “The rise in remittances is a good sign as it is helping Pakistan in keeping its external account in a comfortable position,” Sohail said.

However, he said this should not provide any space to the government to be complacent while taking measures to broaden the tax net. “There is a general feeling that the government is complacent before the upcoming budget owing to rise in remittances and exports,” he said.

Government may take some tax measures in the budget, he said, adding that the government was also under pressure from the International Monetary Fund to control fiscal deficit. The government may levy taxes on real estate and agriculture income and lift tax exemption from different sectors, he added.

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