During September, the current account was surplus with $447 million which reduced the July-September deficit by 7.1 per cent. — File Photo

KARACHI: Remittances sent by overseas Pakistanis are growing at a faster pace as these reached $3.5 billion in the first four months of the current fiscal year, giving hope for cumulative $10 billion inflows by the end of this year.

Data released by the State Bank on Thursday showed that remittances increased by 13.32 per cent during July-October for a total inflow of $3.501 billion. In terms of dollars, it was an increase of $411.61 million.

At the time of financial crisis due to devastating floods, the high remittances growth could minimise the size of current account deficit. The current account deficit during the first quarter of 2010-11 rose to $545 million but it was mainly due to surplus in September

During September, the current account was surplus with $447 million which reduced the July-September deficit by 7.1 per cent.

According to State Bank, in October 2010, an amount of $855 million was sent home by overseas Pakistanis, up 12.77 per cent or $96.81 million compared to $758 million received in the same month last year.

The remittances have taken a vital position in economy as these are the second biggest source of foreign exchange after exports.

The monthly average remittances for July-October 2010 period come out to $875.35 million as compared to $772.45 million during the same corresponding period of the last fiscal year, registering an increase of 13.32pc.