KARACHI, Nov 11: Remittances sent by overseas Pakistanis fell sharply in October, the lowest during the current fiscal 2008-09.

During October, remittances fell by $194 million to $466 million as compared to September when the country received $660 million.

The remittances declined by 19.67 per cent in October compared to the same month of last year.

The data provided by the State Bank shows that remittances dropped from all regions where Pakistani workers are residing.

The major cut was witnessed from United States, United Kingdom and Saudi Arabia. The reason for the sudden drop was not known.

However, the global slowdown in the economy might have impacted the remittances as the financial meltdown suggests every one, from industry to individual, to keep maximum liquidity.

If this is the reason for drop in remittances, the country might see a further fall of inflows. The government heavily relies on remittances for its foreign exchange.

During last year, the country received $6.5 billion as overseas remittances. With the beginning of the current fiscal, the inflows increased substantially. In July the remittance surged by 26.53 per cent, in August by 21 per cent and in September by 28 per cent.

The trend suddenly changed in October in which worst historical meltdown of financial system was faced in the United States and Europe and the impact is now penetrating the emerging economies, like Pakistan.

The fall in remittances would put the government in a difficult situation. The government was making effort to collect dollars from friendly countries as well as international donors to improve its current account imbalances.