RemittancesGateway.org

Pakistan: Remittances grow by 18.33 percent to $5.24 billion in first five months

Thursday, 15 December 2011 10:41

Source: The News International
By:Shahnawaz Akhter

Overseas Pakistanis remitted $5.24 billion in the first five months of the current fiscal year, showing a growth of 18.33 percent against $4.428 billion in the corresponding months last fiscal year, the State Bank of Pakistan (SBP) said on Tuesday.

Consistent growth in inflows of remittances is mainly attributed to joint efforts of the central bank, Ministry of Overseas Pakistanis and the Ministry of Finance by launching “Pakistan Remittance Initiative” in April 2009.

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“This initiative has been taken to achieve the objective of facilitating and supporting faster, cheaper, convenient and efficient flow of remittances,” a statement recently issued by the SBP said.

The remittances stood at $6.4 billion in FY08 and went up to $7.6 billion in FY09. The remittances further increased to $8.6 billion in FY10 and hit a historic high of $11.2 billion in FY11. In order to recognise consistence rise in remittances, the International Association of Money Transfer Networks (IAMTN) awarded the PRI with “Money Transfer Award 2011” in the category of Asia-Pacific, including South Asia.

“This special award recognised the efforts of the central bank to deliver an innovative and effective initiative,” the statement said. During the first five months of July–November, the remittances received from all countries of the world registered growth.

The inflow of remittances during the period under review from Saudi Arabia grew to $1.364 billion against $935.76 million. Similarly, remittances from the UAE increased to $1.167 billion from $1.045 billion.

The overseas Pakistanis sent $975 million from the United States as it was $841 million in the corresponding months last year. Meanwhile, the remittances received from the GCC countries, including Bahrain, Kuwait, Qatar and Oman, the UK and the European Union countries stood at $600 million, $594 million and $160 million, respectively during July-November 2011/12 against $530.3 million, $496 million and $147.57 million, respectively received during the corresponding period last fiscal year.

However, inflows of remittances from Norway, Switzerland, Australia, Canada, Japan and other countries during the first five months of the current fiscal year registered decline to reach $378.66 million against $431.93 million received in the first five months of the last fiscal year (July-November 2010).

The monthly average remittances for the July-November period come out to be $1.048 billion against $885.66 million during the corresponding period of the last fiscal year, registering an increase of 18.33 percent.

The inflows of remittances in November slightly went down to $924 million that was $926.89 million in the corresponding month last year, showing 0.21 percent decline.

In November, the inflow of remittances from Saudi Arabia, the UAE, the US, GCC countries, including Bahrain, Kuwait, Qatar and Oman, the UK, and the EU countries amounted to $218.98 million, $204.13 million, $179.77 million, $113.89 million, $107.38 million and $30.45 million, respectively against the inflow of $171.45 million, $225.75 million, $175.05 million, $113.39 million, $102.85 million and $30.50 million, respectively in November 2010.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during November amounted to $70.32 million against $107.9 million received in the same month (November 2010).