Remittances touch record $6.5bn: Dawn

By Shahid Iqbal

KARACHI, July 16: Pakistan received record remittances of about $6.5 billion during 2007-08 from overseas workers enabling the country to meet at least 50 per cent of the current account deficit.

The State Bank of Pakistan on Wednesday reported an inflow of $6.451 billion as workers' remittances, which was 17.4 per cent higher than the preceding year, an addition of $957 million recorded this year.

Analysts termed the 2007-08 as the difficult year, which received unprecedented help from the overseas Pakistanis to meet 50 per cent of current account deficit touching $12.9 billion in first 11 months of the previous year.

"The expected current account deficit is $14.5 to 15 billion for the year 2007-8, which means the remittances were 45 per cent of the entire current account deficit," said Mohammad Imran, research head at First Capital Equities.

The present government is now facing serious challenges to meet the widening current account deficits with rising oil prices in the world market.

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