47. Pakistan Economic Survey 2011-12 - Consultancy Services in ...

Trade and Paymentsthe services account during the period underreview.Within services export, government serviceswitnessed a major decline of 34.4 percent duringJuly-April 2011-12 compared to the same periodlast year. This was the outcome of the absence oflogistic support inflows during July-April 2011-12as compared to $ 743 million in the correspondingperiod last year.The other major categories of services exportwhich showed a fall during July-April 2011-12remained transportation, other business servicesand communication services; these servicesdeclined by $ 51.0 million, $ 68.0 million and $21.0 million respectively over the July-April 2010-11. On the other hand, the major service exports ofinsurance, computer and information and travelwitnessed a major increase during July-April 2011-12.Government services and travel remains the majorcontributors to the overall increase in servicesimports during July-April 2011-12.Workers’ RemittancesAccording to World Bank estimates theremittances flows to developing countries in 2011increased by 8.0 percent from $ 325 billion in 2010and is forecast to grow at 7 to 8 percent annuallytill 2014.Compared to the 10.1 percent growth in SouthAsia, remittances to Pakistan witnessed a stronggrowth of 25.8 percent in 2011 over previous year.Pakistan has become the fifth largest remittancesrecipient developing country in 2011. The generalupward trend in remittances during the periodunder review was composed of a per annumaverage growth from U.A.E of 32.2 percentfollowed by U.K. (30.1 percent), Saudi Arabia(27.3 percent), EU countries (25.3 percent), OtherGCC Countries (15.1 percent) and USA (9.5percent) during the period 2007-08 to 2010-11.Fig-8.2:Remittances By Country of Source FY 08 FY 09 FY 10 FY 113,0002,7002,4002,100US$ Million1,8001,5001,2009006003000USA U.K. Saudi Arabia U.A.E. Other GCCCountryEU CountriesMore recently, following the impressiveperformance of the last year, worker’s remittancescontinued to provide strength to the currentaccount. During July-April 2011-12, worker’sremittances grew by 20.2 percent and stood at $10.9 billion. The cumulative increase of $ 1.83billion during July-April 2011-12 over July-April2010-11 is largely attributed to the government’sefforts to divert remittances from the informal tothe formal channel. Since the launch of thePakistan Remittances Initiative (PRI), the share ofworker’s remittances coming through the bankingchannel has increased considerably, from 75percent in 2009-10 to 91 percent in 2011-12. PRIhas taken a number of steps to enhance the flow ofremittances through formal channels which113