Government mulling offering incentives to overseas Pakistanis

Piqued by current decline in remittances, the government has reportedly discussed the option of providing some incentives to overseas Pakistanis to increase the workers'' remittances, a support to the balance of payment position (BoP). Sources said a meeting of the Economic Co-ordination Committee (ECC) of the Cabinet presided over by Finance Minister Ishaq Dar spent most of the time on a briefing on economic indicators and focused on decline in the workers'' remittances and as to what should be done to arrest the trend.
A decline of 1.9 percent with negative growth from all the countries except the European Union during the first seven months of the current fiscal year as compared to the same period of last fiscal year was unsettling for the economic managers. Sources quoted Minister for Planning, Development and Reforms Ahsan Iqbal stating in the context of discussion on remittances that "an incentive is very important for overseas Pakistanis."
The meeting was informed that there was a decline of 9.2 percent from the USA during July-January 2016-17 as compared to the same period of the last fiscal year with remittances decreasing to US $1.338 billion from US $1.473 billion.
A 5.6 percent decline in exports was reported to the ECC from Saudi Arabia during the period under review (July-January 2016-17 over July-January 2015-16) subsequent to their contraction to US $3.169 billion from $3.359 billion, followed by 1.8 percent decline from the UAE as remittance decreased to US $2.44 billion from US $2.486 billion.
The inflow of workers'' remittances from other GCC countries contracted to US $1.340 billion during the first seven months of the current fiscal year from US $1.364 billion for the same period a year before, reflecting a decline of 1.7 percent. Workers'' remittances have declined from the UK to US $ 1.275 billion during the period under review from US $ 1.425 billion, showing a decline of 10.6 percent.
Sources said the meeting was informed that there was, however, an increase in workers'' remittances from the EU during July-January 2016-17 as they reached US $262 million as opposed to $224 million for the same period of last fiscal year with a growth of 17 percent, followed by an increase in remittances from other countries to $857.4 million from $587 million with a 45.9 percent increase. As a result of a decline in the number of workers in six out of eight countries, total remittances declined to US $10.946 billion during July-January 2016-17 from US $11.154 billion for the same period of the last fiscal year.