The overseas Pakistanis sent about $7 billion during the first eight months of current fiscal year giving hope that the country could receive over $10 billion by the end of the fiscal year. - File Photo

KARACHI: The State Bank stated on Thursday that overseas Pakistani workers sent 43 per cent more remittances in February as compared to the same month of the previous year, showing a remarkable increase. Overseas Pakistanis kept on improving their faith in economy as they sent more money each month than the previous year, strengthening the government struggling to convince IMF for more help but the latter went tougher in negotiations with Pakistan.

Experts said remittances emerged as sliver lining in dark clouds of poor economy which shattered the confidence of local as well as foreign investors.

The overseas Pakistanis sent about $7 billion during the first eight months of current fiscal year giving hope that the country could receive over $10 billion by the end of the fiscal year.

The SBP said the remittances continued to show a rising trend as an amount of $6.963 billion was received in the first eight months (July-February) of the current fiscal year, showing an increase of $1.176 billion or 20.32 per cent as compared to $5.787 billion received over the same period of the last fiscal year.

The monthly average remittances for the July-February period come out to $870.41 million as compared to $723.39 million during the corresponding period of the last fiscal year, registering an increase of 20.32 per cent, said the SBP.

In February 2011, $845.28 million were sent, up 43.50 per cent or $256.25 million as compared to $589.03 million received in the same month last year.

The recent upheaval in the Middle East has created fear that the oil price hike, like in 2008 when prices rose to record $147 per barrel, could erase most of foreign exchange reserves of the country.

The SBP reported on Wednesday that the country’s total reserves were $17.37 billion.

The country pays largest bill for import of oil which is the real reason for imbalance on external accounts. However, in the first seven months of this fiscal, the current account deficit was just minus 0.1 per cent of the GDP while estimate for the full year is minus 2.8 per cent of the GDP.

Pakistan succeeded to improve its trade imbalance as exports rose by 20 per cent and imports by 11 per cent in the first seven months of this year. Remittances, along with improvement in the trade deficit, helped the country to maintain minimum current account deficit.