The government failed to achieve the 6.5 percent growth in remittance inflows in fiscal year 2012-13 with inflows recorded at $13.920 billion against the projected target of $14.1 billion. Sources said Economic Co-ordination Committee (ECC) of the Cabinet meeting chaired by the Finance Minister Senator Ishaq Dar was informed that worker's remittances, which provided critical support to the balance of payment account, remained below target during fiscal year 2012-13.

Secretary Finance Dr Waqar Masood reportedly informed the ECC that $13.9 billion during 2012-13 against $13.1 billion for previous year reflects a growth of 5.6 percent in remittances. Remittances from United States (US) decreased to $2.186 billion during the last fiscal year from $2.334 billion in 2011-12, showing a negative growth of 6.4 percent. Remittances from EU also decreased to $357 million last fiscal year from $385 million, the meeting was further informed.

The highest growth of 27.9 percent was witnessed in remittances from UK, followed by $11.3 billion from Saudi Arabia and 7.6 percent from other GCC countries as well as 3.5 percent from other countries. The meeting was informed that the remittances from UK increased to $1.946 billion during 2012-13 from $1.521 billion in 2011-12. Worker's remittance inflows from Saudi Arabia increased to $4.105 billion during the last fiscal year from $3.687 billion in the previous year. The ECC was informed that remittances from other GCC countries increased to $1.608 billion during 2012-13 from $1.495 billion in 2011-12 whereas remittance from other countries witnessed a marginal growth to $968 million from $935 million.

Copyright Business Recorder, 2013