ISLAMABAD - The Ministry of Finance has claimed that Pakistan will receive a record $14billion in foreign remittances during ongoing financial year (2012-13).

An official of Finance Ministry told Online that surge in foreign remittances will go a long way to put the nascent economy of the country on path to firmness and growth. The official said the government was expecting an increase in the inflow of foreign remittances in the upcoming months which will help support meager economy of the country. In the first four months (July-October) of current fiscal 2012-13, overseas Pakistanis have sent $4.964 billion in foreign remittances, compared with $4.315 billion in the same period last year.

According to the State Bank of Pakistan in October 2012, the inflow of remittances from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman), and EU countries amounted to $347.52 million, $293.74 million, $217.56 million, $197.18 million, $163.37 million and $37.48 million respectively as compared with the inflow of $291.20 million, $216.50 million, $167.60 million, $117.56 million, $131.54 million and $28.08 million respectively in October, 2011.

The monthly average remittances for July to October 2012 come out to $1,241.05 million as compared to $1,078.77 million during the corresponding period of the last fiscal year.

During last financial year ending June 30, 2012 remittances sent home by overseas Pakistani workers crossed $13 billion mark for the first time in country’s history.

According to the State Bank of Pakistan, overseas Pakistani workers remitted a record amount of $13,186.58 million during the last fiscal, showing growth of 17.73 percent when compared with $ 11,200.97 million received during the preceding fiscal year of 2010-11.

Remittances received from all countries of the world showed substantial growth during the last fiscal year and almost all of this growth was through banking channels.

On the hand, the country’s foreign exchange reserves may continue to face pressure due to re-payment of IMF loans in the next more than three years as Pakistan is likely to go to the International Monetary Fund (IMF) to seek a fresh loan in current fiscal year 2012-13 for the retirement of IMF’s Stand-by Arrangement (SBA) facility.

According to the central bank, the country’s foreign exchange reserves have dropped from $14.100 billion to $13.845 billion in the week ending November 9, 2012.