Remittances nearly cover trade gap

Pakistan received $3.9 billion in workers’ remittances in October, the highest monthly total in four months, The Express Tribune reported. Inflows for July to October reached $14.77 billion, up 14% from $12.96 billion a year earlier, while the merchandise trade deficit stood at $14.6 billion.

State Bank of Pakistan data showed October receipts were 13.8% higher than a year earlier and 8.5% above September. Saudi Arabia and the UAE supplied $3.67 billion and $3.05 billion respectively over the four-month period; together, they accounted for about 45.5% of total remittances.

The figures indicate that transfers from overseas Pakistanis are helping meet external financing needs as the trade gap widens. The report also noted that the United Kingdom sent $2.23 billion, while inflows from the United States reached $1.26 billion.