Pakistan Economy - News & Updates - Archive

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Ranking Economy international dollars)
1 United States 13,201,819
2 China 10,043,780 a
3 India 4,247,361 b
4 Japan 4,202,524
5 Germany 2,570,810
6 United Kingdom 2,118,130
7 France 1,941,904
8 Italy 1,753,663
9 Brazil 1,707,712
10 Russian Federation 1,704,036
11 Spain 1,260,949
12 Mexico 1,193,382
13 Korea, Rep. 1,152,301
14 Canada 1,140,628
15 Indonesia 920,852
16 Australia 681,235
17 Turkey 661,651
18 Argentina 617,649
19 Thailand 603,682
20 Iran, Islamic Rep. 592,203
21 Poland 576,375
22 South Africa 566,805 b
23 Netherlands 564,945
24 Philippines 462,765
25 Pakistan 405,689
26 Saudi Arabia 383,789 b
27 Colombia 362,953 b
28 Belgium 357,504
29 Ukraine 355,739
30 Egypt, Arab Rep. 351,478


link - http://siteresources.worldbank.org/DATASTATISTICS/Resources/GDP_PPP.pdf

 

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I can see Pakistan getting into the top ten within my lifetime. India will probably remain at 3rd for a while.

 

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Structured economic reform processes: USAID and BoI sign MoU ​

ISLAMABAD (August 17 2007): The USAID-funded Competitiveness Support Fund (CSF) and the Board of Investment signed a memorandum of understanding (MoU) to support structured economic reform processes for improving Pakistan's investment climate and enhancing its economic competitiveness here on Thursday.

Privatisation and Investment Minister Zahid Hamid and Minister of State for Finance and CSF CEO, Omar Ayub Khan signed the MoU. Mushtaq A. Malik, Secretary BOI, also signed the MoU as a witness. Economic and Commercial Councillor US Embassy, Amy Holman witnessed MoU signing.

The MoU provides BOI and CSF would undertake joint initiatives to support the creation of a Foreign Investors Council of Pakistan (FIC) as a forum for policy dialogue between the government of Pakistan and the foreign Investors, with a view to strengthening Pakistan in competing for international investment, promoting it as a preferred investment location and enhancing its industrial competitiveness.

Speaking on the occasion Zahid Hamid, said that MoU is a landmark in terms of the international community confidence in Pakistan's economic policies. He said Pakistan has incorporated competitiveness as the cornerstone of Pakistan's growth strategy, He said, "I am confident that the Competitiveness Support Fund will support the Board of Investment to generate more foreign direct investment in the country."

Omar Ayub Khan, highlighted the importance of investment promotion for economic growth in competitiveness. "The country needs more foreign direct investment to enhance the productivity of its manufacturing industry, managerial professionalism and skill development, so that the Pakistani industry can compete with high value-added productivity in the international markets," he said.

Amy Holman said competitiveness is the key to long-term economic growth. She added that Pakistan's policies of deregulation, liberalisation and privatisation were working and providing concrete results.

She added that USAID funding for economic growth initiatives will exceed $73 million, and Thursday's agreement reaffirmed commitment for $12 million to continue generating economic success and reducing poverty in Pakistan.

CSF is a joint initiative of the Ministry of Finance and the US Agency for International Development (USAID). It supports Pakistan's goal to have a competitive economy by providing input into policy decisions, working to improve regulatory and administrative frameworks, and enhancing public-private partnerships within the country.

Business Recorder [Pakistan's First Financial Daily]

 

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Mega projects: master plans made mandatory to get development funds ​

KARACHI (August 17 2007): The Sindh government has decided to make it mandatory for all district administrations to submit master plans of the mega development projects for the release funds. Sources in the Sindh Local Government and Spatial Development Department told Business here on Thursday.

They said the district governments and taluka administrations had been advised to submit their master plans of their respective areas as soon as possible. There are 23 districts in the province and the provincial government has allocated Rs 52,364.933 million as District Support Grant for 2007-08 fiscal year as against Rs 45,478.536 million allocated for 2006-07. A meeting, held under the chairmanship of Sindh Local Government and Spatial Development Minister Muhammad Hussain, discussed the matter in details.

Backing the idea to accelerate the development work, the minister expressed concerns over improper utilisation of funds, said the sources. Muhammad Hussain said that the basic reason for inapt funds' utilisation was the absence of any master plan in all districts and talukas of the province. He directed the district governments and taluka administrations to finalise comprehensive master plan for their areas so that the uplift projects could be accelerated.

No district or taluka of the province has yet announced the master plan that encompasses all details about the mega projects being carried out in its jurisdiction. The City District Government Karachi (CDGK), is likely to announce Karachi Master Plan, 2020, setting out a strategic framework to develop the city as per the international standards, during the current month.

Business Recorder [Pakistan's First Financial Daily]

 

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Government completed record number of developmental projects ​

LAHORE (August 17 2007): Provincial Minister for Excise and Taxation Rana Shamshad Ahmed Khan has talked up his government's achievements, saying it has completed a record number of development projects in the country. He met a Pakistan Muslim League (PML) delegation of workers and office-bearers of the youth wing at his office here on Thursday.

Where he said the party under the leadership of President Pervez Musharraf, had made its public service its mission helping the country progress. He said his government was spending billions of rupees on development projects aimed at the public welfare and had allocated more funds for more projects to provide maximum relief to the masses.

He said people would support his party's candidates in the next general elections, urging party workers and office-bearers to play their role in developing the country.

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan’s exports to Afghanistan fall 40pc ​

KARACHI: Exports to Afghanistan have dropped by more than 40 per cent during 2006-07, reflecting a discouraging trend among exporters due to higher duty structure levied by the neighbouring country and new regulatory procedures introduced by the Pakistani government, traders say.

Latest figures compiled by the institutions and traders suggest exports to Afghanistan dropped to $600 million during last fiscal 2006-07 compared to $1.2 billion registered during 2005-06.

“Exports to Afghanistan are on the decline mainly because of discriminatory policies,” said a Peshawar-based exporter asking not to be named.

“The trade policy 2005-06 made abrupt procedural changes to settle claims of rebate on taxes on export to Afghanistan, making it obligatory on the exporters to produce imports’ clearance by Afghan Customs authorities across the border.”

He said the new procedure had created a lot of problems for the exporters because most of the Afghan importers were reluctant to provide copies of requisite documents to Afghan Custom authorities across the border.

The current financial year began on a positive note as the country’s exports rose 10.73 per cent on year in July to total $1.485 billion, less than the $1.529 billion exported in June. Figures released by Federal Bureau of Statistics showed imports grew 4.67 per cent on year to $2.574 billion in July.

The trade deficit narrowed to $1.088 billion from $1.117 billion in July 2006. The government raised the export target for the current fiscal year to $19.2 billion. The exports during last financial year totalled $17.01 billion, below the $17.87 billion government target.

Imports for the current fiscal year are forecast to reach $32.6 billion, after totalling $30.54 billion in the last fiscal year. The government predicts a trade deficit of $13.4 billion in the current fiscal, slightly lower than the $13.49 billion recorded in the last fiscal. However, the exporters regret the way country is losing its export share to Afghanistan, one of the nearest and potential market of Pakistani products.

“There are several reasons, which need to be addressed for a boost in exports to Afghanistan,” said Senator Ilyas Ahmed Bilour, Chairman Pak-Afghan Chamber of Commerce and Industry. “We have forwarded some proposals to both Pakistan and Afghan governments, which are expected to get serious consideration from both sides.”

He said the proposals were discussed during a recently concluded Pak-Afghan Peace Jirga, during which boost in bilateral trade was also incorporated in the final declaration with the consent of traders from the two sides.

“The Afghan government has evolved a discriminatory duty structure, which facilitates the transit trade but doesn’t allow the regular exports under the same structure,” said Bilour. “The situation is not disturbing for the Pakistani exporters but it is also supported by the Afghan importers, who endorsed our proposals.”

The country’s exports to Afghanistan started jacking up in 2002, following higher demand of Pakistani products in the war-ravaged country, which lacks enough manufacturing base to cater to its domestic demands.

The bilateral trade climbed up from $492 million in 2003-04 to $1.63 billion in financial year 2005-06 mainly because of exports.

Pakistan’s exports to Afghanistan fall 40pc

 

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FBR sets monthly, quarterly tax targets ​

ISLAMABAD: The Federal Board of Revenue has finalised monthly and quarterly revenue targets in order to achieve its envisaged target of Rs1.025 trillion for fiscal year 2007-08, The News has learnt.

At the announcement of the budget in June, the government fixed the tax target for the whole year, but it did not set monthly and quarterly targets at that time. However, the FBR has recently finalised the monthly and quarterly targets in order to meet the challenging task of collecting Rs1.025 trillion in 2007-08.

According to revenue figures finalised by FBR authorities and exclusively made available to The News, the first quarter (July-September) target has been set at Rs218 billion compared to Rs183.9 billion for the same period of the previous fiscal, envisaging an increase of 21.3 per cent.

For the first month (July) of the current fiscal, the revenue target was Rs47.8 billion compared to Rs46.2 billion in the same month of the previous fiscal. In August 2007, the FBR expects to collect Rs58.6 billion against Rs46.3 billion in August 2006. In September 2007, the FBR sees collecting Rs111.8 billion against Rs91.4 billion in the same month of the previous fiscal.

In the second quarter (October-December), the FBR envisages tax collection of Rs280.3 billion against Rs226.6 billion in the same period of 2006-07, an increase of 23.7 per cent.

For October 2007, the tax target would be Rs66.4 billion against Rs53.3 billion in the previous year. In November, the FBR expects to net Rs69.5 billion against Rs59 billion in the previous year. In December, the FBR would collect Rs144.4 billion in taxes compared to Rs114.2 billion in the same month of the previous fiscal.

The FBR has set tax collection target of Rs230 billion for the third quarter (January-March) period of the current fiscal year against Rs186.5 billion for the same quarter of the previous fiscal.

For January 2007, the tax collection target is Rs61.9 billion against Rs52.2 billion, for February Rs65.7 billion against Rs52.4 billion and for March Rs102.4 billion against Rs81.9 billion.

For the fourth and last quarter (April-June), the FBR has set an ambitious target of Rs297.1 billion against Rs244.4 billion in the same quarter of the previous fiscal, anticipating an increase of 21.6 per cent.

For the month of April, the tax collection target is Rs73.1 billion against Rs59.5 billion, for May Rs81.2 billion against Rs65.8 billion and for June Rs142.8 billion against Rs119.2 billion.

By achieving the four quarterly targets, the FBR expects to net Rs1.025 trillion in 2007-08 against revenue collection of Rs841.4 billion in 2006-07.

FBR sets monthly, quarterly tax targets

 

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KPT to spend Rs5.5bn on berths’ reconstruction ​

KARACHI: The Karachi Port Trust (KPT) has decided to award the tender for reconstruction of five berths to a Korean firm at a cost of Rs5.5 billion, a senior KPT official told The News on Thursday.

Depth of berths 10 to 14 would also be increased from current 10.5 metres to 16 metres to enable handling of larger ships and bring down shipping freight cost, said Brig (Retd) Syed Jamshed Zaidi, General Manager Planning and Development Department of KPT.

“The tender will be awarded in next few days for the first phase of reconstruction,” he said, explaining the renovation of remaining non-operational berths 15 to 17 would be carried out in the second phase.

Since berths 10 and 14 collapsed during the recent downpour, the dilapidated status of a great part of the wharf has come under media spotlight. The KPT has a total of 30 berths.

Zaidi said cargo loading and unloading activity had been stopped through berths 10 to 17. “These (eight) berths are over 40 years’ old and reconstruction will add another 40 to 50 years to their life.”

The reconstruction of the berths would be completed in two years, which would increase the capacity of the port to handle expected rise in cargo traffic, he said.

While Zaidi insisted that berth occupancy was 50 to 55 per cent and closure of some of the berths would not slow down trade activity through the port, shipping agents say otherwise.

“That must be the average figure for the whole year,” said Rasheed Abro, Vice Chairman Pakistan Ships’ Agents Association (PSAA). “On any given day, there will be six ships waiting for their turn to be moored at a berth. You can imagine the congestion.”

Painting a drastic picture, he said the closure of the berths would leave a lasting impact on trade and economy of the country.

“In a few days, import of fertiliser has to be started. Congestion at the port may delay its timely delivery to the farmers.”

He insisted that the poor condition of the berths had been brought to the knowledge of the KPT administration time and again, but no step was taken to reinforce the weak foundations supporting the wharf structures.

KPT to spend Rs5.5bn on berths’ reconstruction

 

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Airblue to buy planes, mulls listing ​

KARACHI: Airblue, Pakistan’s biggest private airline, plans to spend up to $700 million over the next five years on new aircraft as it replaces its existing fleet of leased planes.

Chief Operating Officer Shahid Khaqan Abbasi also said Airblue, which competes with state-run Pakistan International Airlines on several domestic routes, was considering a stock market listing.

“We are discussing the option, and it will depend on market conditions as well as appetite. We may well choose to go for listing abroad, as it seems more viable,” he said.

Abbasi said the airline was in talks with both Airbus and Boeing for the purchase of up to 14 short-to-medium haul aircraft.

“We plan to buy somewhere between eight and 14 aircraft either from the Boeing 737 NG (New Generation) family or the A320 family of Airbus,” Abbasi told reporters on Thursday, noting a deal, which could be announced in time for the Dubai Air Show in October, could be worth $400-$700 million.

He said delivery would start in 2009 and Airblue would take one plane around every three months. Another senior Airblue official, who asked not to be named, said the airline would most likely choose the Airbus A320.

“We already operate these aircraft and have a comfort level with them. So it suits us to have more of the same family.”

Airblue to buy planes, mulls listing

 

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ADB package shows world institutions’ confidence: PM ​

ISLAMABAD: Prime Minister Shaukat Aziz on Thursday appreciated the Asian Development Bank’s (ADB) $6 billion package to Pakistan for development of various sectors and said that this reflects confidence reposed by major international financing institutions in the country.

He was talking to the Director General ADB, Juan Miranda, who called on him at the Prime Minister’s House.

Giving an overview of Pakistan’s economy, the Prime Minister said the country maintained a solid economic pace in 2006-07 and achieved 7 per cent growth.

The magnitude of growth that Pakistan has achieved during the previous five years has positioned Pakistan as one of the fastest growing economies in Asia, he said.

The Prime Minister said, Pakistan’s economy grew in the initial 53 years by a mere US$63 billion, whereas, it achieved a record growth in the last seven years of US$87 billion, touching US$144 billion.

This reflects the sound economic policies and reform of the government, he said.

The Prime Minister said that Pakistan has emerged as a preferred destination for foreign investors.

The per capita which was US$ 438 seven years ago has increased to US$850 and is likely to touch US$1000 by next year, he added.

Juan Miranda said that ADB Country Assistance Strategy is in the process of finalisation and is aimed at providing US$6 billion over a period of three years to Pakistan.

Its utilisation, he said, would include energy sector, national trade corridor, urban development, resource management, transportation, communication and poverty alleviation.

Advisor to PM on Finance, Dr Salman Shah, Secretary Economic Affairs Division and senior officials attended the meeting.

ADB package shows world institutions’ confidence: PM

 

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‘Pakistan Country Assistance Strategy’: ADB to provide $6 billion over three years​

ISLAMABAD: The Asian Development Bank (ADB) is finalising ‘Pakistan Country Assistance Strategy’ aimed at providing $6 billion to Pakistan over a period of three years.

The strategy includes financing energy sector, national trade corridor, urban development, resource management, transportation, communication and poverty alleviation.

Prime Minister Shaukat Aziz was informed by the Director General of ADB Juan Miranda, who called on Mr Aziz at the PM House on Thursday.

Mr Aziz appreciated the ADB’s package to Pakistan of $6 billion for the development of various sectors and said that it is a reflection of the confidence reposed by major international financing institutions on the economic credentials of the country.

Giving an overview of Pakistan’s economy, he said the country maintained a solid economic pace in 2006-07 and achieved 7 percent growth. The magnitude of growth that Pakistan has achieved during the previous five years has positioned Pakistan as one of the fast growing economies in Asia.

The PM said Pakistan’s economy grew in the initial 53 years by only $63 billion, whereas, it achieved a record growth in the last seven years of $87 billion reaching a total size of $144 billion. This reflects the sound economic policies and reform agenda of the government, he said.

Mr Aziz said that Pakistan has emerged as a preferred destination for investments. The total foreign investments, he added, has touched record level of $8.5 billion, which shows the confidence of the foreign investors in government’s policies.

The PM further said that Pakistan is blessed with a unique demographic dividend. Out of 160 million people, 100 million are below the age of 25, which will contribute to the economic growth and would further increase the middle class. The per capita, which was $438 seven years ago has increased to $850 and is likely to touch $1,000 by next year.

Mr Miranda said the ‘ADB Country Assistance Strategy’ is in the process of finalisation and is aimed at providing $6 billion over a period of three years to Pakistan.

Advisor to the PM on Finance, Dr Salman Shah, Secretary Economic Affairs Division and senior officials also attended the meeting.

Daily Times - Leading News Resource of Pakistan

 

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Pakistan to get $35m for microfinance programme​

RAWALPINDI, Aug 16: The International Fund for Agricultural Development (IFAD) has agreed to provide $35 million to Pakistan to help finance a programme for increasing sustainable microfinance.

The loan will formally be approved by the 91st session of IFAD Executive Board meeting in Rome from September 11-12. The loan to be directly supervised by Rome-based IFAD is within the 2007-2009 allocation cycle, according to the loan document made available to Dawn.

The development goal of the programme is to reduce poverty, promote economic growth and improve the livelihoods of rural households under the overall objective of facilitating sustainable growth in microfinance in order to give the rural poor greater access to financial services.

The programme for increasing sustainable finance is concordant with the government’s Second Poverty Reduction Strategy Paper, which sees microfinance as “an important instrument for poverty reduction”.

It recommends that microfinance “move away from subsidisation of microfinance services to commercialisation”, and concludes that “the key to reducing costs is to introduce market competition, innovation and efficiency.”

In particular, the programme will support the Government’s stated target of reaching three million microfinance borrowers by 2010, it says.

The programme is consistent with the objective of the IFAD Strategic Framework 2007-2010 of increasing access to financial services, and with the objective set out in IFAD’s country strategic opportunities paper of expanding rural enterprises and financial systems in Pakistan.

It is also in line with the IFAD Rural Finance Policy, in particular the partnership with an autonomous microfinance apex institution; the focus on commercialisation of the sector; and the use of instruments such as equity participation in rural financial institutions and the provision of credit guarantees.

The programme was developed to respond to one of the key gaps in the microfinance sector identified in the April 2007 Country-Level Effectiveness and Accountability Review issued by the Consultative Group to Assist the Poor, and to be complementary to ongoing donor-funded projects.

Pakistan to get $35m for microfinance programme -DAWN - Business; August 17, 2007

 

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Wapda to collect Rs 52 billion for 969 megawatts project: 10 paisa per unit raise approved ​

ISLAMABAD (August 18 2007): The Economic Coordination Committee (ECC) of the Cabinet has approved, in principle, 10 paisa per unit increase in electricity tariff for the consumers of Wapda to arrange local component of resources for the much-delayed 969 MW Neelam-Jehlum hydropower project, official sources told Business Recorder.

However, Prime Minister Shaukat Aziz, who chaired the meeting, directed Finance Ministry to table the issue in the next Cabinet meeting, on August 22, for discussing its political implications.

Ten paisa per unit increase in power tariff would appear in the bills as development surcharge and Wapda is expected to collect Rs 6.5 billion annually from the consumers excluding those who use 50 units per month. With the implementation of this decision, Wapda would collect Rs 52 billion for the Rs 84.5 billion project to be completed in eight years, sources said, adding that foreign exchange component would be arranged from other sources.

"The main purpose to refer the project to the Cabinet is to avoid political implications, especially when the general elections are nearing," sources added. They said that the ministers would be asked to convince the public about the importance of this project with the argument that if Pakistan does not go for this project, it would lose the right on Indian waters.

Sources further said that the ECC also cleared the proposal to cease the powers of Oil and Gas Regulatory Authority (Ogra) for notifying Liquefied Petroleum Gas (LPG) producers' prices and impose restrictions on its export. They said that it was agreed that producers should be allowed to revise prices of LPG according to their own formula and Ogra would monitor it and if the latter feels something wrong then recommend action against them.

Sources said that the Prime Minister said he did not allocate LPG quota to anyone, but producers especially Parco, are crying for change in the mechanism. After the meeting, Dr Ashfaque Hasan Khan, Economic Advisor to the Finance Ministry, said that the language used in the proposed decision has been termed uncomfortable and ECC directed that it should be changed.

He said that the ECC has approved increase in Produce Index Unit (PIU) from Rs 400 to Rs 1200. The government had fixed Rs 400 PIU price in 1989 in accordance with Loan for Agriculture Purposes Act 1973.

"Now farmers can get three times more loan from banks on their land," he added. He said that the ECC also approved Rs 500 million as GoP equity to be provided for the Textile City Karachi. The proposal had been submitted by the Ministry of Textile Industry.

The ECC also approved three percent reduction in interest on outstanding loans obtained by the spinning textile industry from July 2003 to 30 June 2007, he said, adding that the impact of this relief on national exchequer would be of Rs one billion.

Dr Ashfaque said that the ECC spent most of its time to discuss prices situation and claimed that CPI was increased by 6.37 percent in July, which was lowest in last four years. In July 2004-05 CPI registered 9.3 percent growth, followed by 9 percent in 2005-06 and 7.6 percent in 2006-07, he said and hoped that the target of 6.5 percent set for the current fiscal year would be achieved.

With regard to stock position, he said that wheat stock was 4.723 million tons as of August 15, of which Punjab held 2.65 million tons, Sindh 0.61 million tons, NWFP 0.85 million tons, Balochistan 0. 34 million tons and Passco 1.342 million tons while hoarders were keeping 1.2 million tons. He said that anti-inflation committee headed by the Minister for Industries and Production Jahangir Khan Tareen would submit its recommendations next week to the Prime Minister.

The committee would recommend wheat release prices for the provinces and Passco, ban on export of flour or imposition of Regulatory Duty and strategy regarding pulses price. He said that the number of utility stores in the country has increased to 3500 as per the plan approved by the government.

Business Recorder [Pakistan's First Financial Daily]

 

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Micro finance bank to be expanded: Prime Minister ​

ISLAMABAD (August 18 2007): Prime Minister Shaukat Aziz has said that the government has envisaged extending the coverage and outreach of micro-finance facilities from the present one million to three million borrowers till 2010 as part of government poverty reduction strategy.

This was stated by the Prime Minister while chairing a meeting which approved in principle the action plan on expanding the micro-credit facility to poor households, here at Prime Minister house on Friday. The Prime Minister said that the grass-roots lending to the poor through bank credit would help them increase their income.

Micro-financing, he added, is the best way of reaching out the marginalised and the forgotten which can change their destinies, as experienced in a number of developing countries. This model, he said, is based on the strategy that poverty decreases by increasing the income.

The Prime Minister said the government is focusing on improving the standard of living of common man. Lack of resources, he added, is a major impediment in their efforts to have a better standard of living. Micro credit facility, he said, is an effective enabler to generate economic activities, reduce poverty and improve living standards. He expressed confidence that this facility will provide them with opportunities to augment their income and move up the social ladder.

The Prime Minister said that the government is promoting public-private partnership and encouraging them to come forward and involve themselves in organising micro-finance credits to the less privileged sections of society.

The meeting approved in principle the action plan to create a micro finance bank under the National Rural Support Programme (NRSP). It was emphasised that NRSP's lending operations as a bank should be sustained through raising funds by attracting deposits for which the rural community in particular has to be mobilised. The delivery cost could be reduced through efficiency while the staff to be recruited has to be committed with a mission to serve the poor.

Earlier, in his presentation, Dr Rashid Bajwa, CEO, NRSP, explained the salient features of the action plan to increase the number of active borrowers from one million to 3 million by 2010 as well as opening up the lending operations by establishing a micro-finance bank.

He elaborated that out of the existing number of borrowers 60 percent are in rural areas and 40 percent in urban areas, which has helped increase the income of the poor people through availability of credit for establishing new sources of income.

He said that the utilisation of micro-finance in the rural areas would help develop the agriculture, livestock and allied sectors. Dr Bajwa informed the meeting that the micro-financing efforts of the government have been a success, particularly the NRSP growth which was recorded at 105 percent for the year 2006-07 over 2005-06. While explaining the financing and growth strategy, he said that the NRSP is working all over the country reaching union council level and its operation would be further expanded in future.

The meeting was attended by Advisor to the Prime Minister on Finance Dr Salman Shah, Governor State Bank Dr Shamshad Akhtar, Shoab Sultan Khan, Chairman Rural Support Programmes Network, Shandana Khan, CEO, Rural Support Programmes Network and other senior officials.

Business Recorder [Pakistan's First Financial Daily]

 

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Remittances up 31.48 percent in July ​

KARACHI (August 18 2007): Expatriates remittances witnessed tremendous growth of 31.48 percent during the first month of the current fiscal (July 2007). Remittances, sent home by overseas Pakistanis, continued to show a rising trend during July around 495.69 million dollars have been received, while the remittances were 377.01 million dollars in the same month of 2006-07 fiscal, depicting an increase of 118.68 million dollars.

The amount of 495.69 million dollars includes 0.29 million dollars received through encashment and profit earned on foreign exchange bearer certificates (FEBCs) and foreign currency bearer certificates (FCBCs).

The inflow of remittances into Pakistan from almost all countries of the world increased last month as compared to July 2006. Remittances in July this year from the US, Saudi Arabia, United Arab Emirates (UAE), Gulf Cooperation Council (GCC) countries, including Bahrain, Kuwait, Qatar and Oman, UK and European Union (EU) countries amounted to 127.99 million dollars, 106.55 million dollars, 77.35 million dollars, 70.30 million dollars, 39.50 million dollars and 14.81 million dollars, respectively as compared to 90.73 million dollars, 80.92 million dollars, 59.62 million dollars, 57.48 million dollars, 31.70 million dollars and 10.53 million dollars, respectively in July 2006. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during July amounted to 58.90 million dollars as against 45.35 million dollars in July 2006, showing a rise of 29.87 percent or 13.55 million dollars.

It may be mentioned here that in the 2006-07 fiscal year, the country received the highest-ever amount of 5.49365 billion dollars as workers' remittances as compared to 4.60012 billion dollars in the 2005-06 fiscal year, showing an increase of 893.53 million dollars or 19.42 percent.

The monthly average of remittances during the last fiscal year stood at 457.80 million dollars, up 19.42 percent as compared to 383.34 million dollars during the 2005-06 fiscal year.

Business Recorder [Pakistan's First Financial Daily]