This is for the first time that remittances rose above $8 billion in any fiscal year while the money inflow for June is yet to be accounted for, the SBP said in a press release.
The amount of $8,064.47 million includes $1.02 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).
Last year, the State Bank, Ministry of Finance and Ministry of Overseas Pakistanis had undertaken a joint initiative called the Pakistan Remittance Initiative (PRI) with a view to facilitating the flow of remittances through formal channels. In this regard, a number of steps have been taken by the PRI which have started to materialise and remittances through formal channels are showing a considerable growth.
Before that, many expatriate Pakistanis were sending money through the informal Hundi and Hawala system, which delivered money at a swift pace compared to the slow-moving banking channel. However, that system was also a source of money transfer for terrorists and other unscrupulous elements, which sparked a government crackdown on the system. This coupled with the PRI encouraged people to send remittances through formal channels.
The SBP said Pakistan has been reported as a top nation which has shown the highest growth in the world in remittances despite recent global financial crisis.
In May, $757.86 million was sent home by overseas Pakistanis, up 5.16 percent or $37.18 million, compared to $720.68 million received in the same month last year.
The SBP said the inflow of remittances in the July-May 2010 period from the UAE, Saudi Arabia, the US, Gulf Cooperation Council (GCC) countries (including Bahrain, Kuwait, Qatar and Oman), the UK and EU countries amounted to $1,842.18 million, $1,718.31 million, $1,606.36 million, $1,132.03 million, $793.91 million and $229.74 million respectively.
In the same period last year, remittances from these countries were $1,523.89 million, $1,407.23 million, $1,581.48 million, $1,094.54 million, $537.11 million and $224.71 million respectively.
Remittances from Norway, Switzerland, Australia, Canada, Japan and other countries during the 11 months amounted to $740.88 million against $706.84 million in the same period last year.
Monthly average of remittances for July-May 2010 was $733.14 million compared to $643.30 million in the corresponding period of the last fiscal year, an increase of 14 per cent.
Published in the Express Tribune, June 11th, 2010.
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