How to increase remittances: LCCI for offering incentives to overseas Pakistanis

LAHORE: Trust building, encouragement and the lucrative incentives to the overseas Pakistanis can multiple the foreign remittances which are the major part of our economy.

President of the Lahore Chamber of Commerce and Industry (LCCI) Kashif Anwar, Senior Vice President Zafar Mahmood Chaudhry and Vice President Adnan Khalid Butt said that the overseas Pakistanis are playing a great role in the economy of Pakistan through their remittances.

They said that the remittances in 2022-23 dropped by around US four billion dollars to 27.3 billion dollars. It is worth mentioning that in 2021-22, the remittances stood at US 31.3 billion dollars. One of the main reasons of drop in remittances in 2022-23 was the difference between the inter-bank and open market dollar rate. Since this issue is resolved now, it is expected that remittance will pose a sound growth in 2023-24.

In the first three months of the financial year (July-September 2023-24), the remittances stood at US 6.3 billion dollars.

They said that the government should take measures to ensure that these remittances are invested in productive sectors. They said that foreign remittances could easily reach US 50 billion dollars in the next few years if the government announces incentives on the investment made by expatriate Pakistanis.

They said that the government should encourage the expats to invest in energy, agriculture, telecommunication and Information Technology. They said that a large number of overseas Pakistanis are keen to invest in Pakistan. They said that the government would have to discourage the Hawala system as annually billions of dollars are being sent through this illegal way.

The LCCI office-bearers said that at a time when the country is experiencing various economic challenges, rise in home remittances would provide much-needed support.

They said that increase in home remittances would be a great help in narrowing down current account deficit of the country, building foreign exchange reserves, imparting stability to the exchange rate, softening inflationary pressures and reducing the need of the country to borrow.

They said that the increase in foreign remittances, would pave the way for a self-reliant economy. They said that overseas Pakistanis are an asset for the country therefore the government should acknowledge their services for the country.

They hoped that the government would have to make policies more conducive and announce lucrative incentives to attract maximum investment from the overseas Pakistanis.

Copyright Business Recorder, 2023