FPCCI sounds the alarm: Major decline in workers’ remittances expected

KARACHI: Federation of Pakistan Chamber of Commerce and Industries (FPCCI) sounded the alarm, saying there is a fear of a major decline in remittances due to difficulties in getting visas for Pakistani workers in Gulf countries.

Addressing a press conference at Federation House on Thursday, Senior Vice President FPCCI Saqib Fayyaz Magoon along with Vice Presidents Asif Sakhi, Nasir Khan, Chairman Pakistan Customs Agents Association Saifullah, Sham Lal Manglani and others express fear that there will be a 20 to 25 percent decline in remittances this year.

The situation of getting visas for Pakistani workers in Gulf countries has become quite serious.

Gulf countries had assured that workers would get visas on the basis of FPCCI letters, now the situation is that even on the basis of FPCCI letters, 50 percent are being rejected.

Saqib Fayyaz Magoon said that in eight months, $22 billion has been exported, while imports during this period were $37 billion, such a huge trade deficit is being met through remittances.

He said that hindrance with labour visas this year will increase problems for the economy, and demanded the Ministry of Foreign Affairs to immediately deal with the situation.

Saqib Fayyaz Magoon said “the government is considering buying electricity from solar consumers for Rs 10, as it is now, but this has been stopped for the time being. Due to lack of consultation with stakeholders, policies keep changing all the time.

The government feels that perhaps changing policies does not cause any harm.“

He said “the fact is that consumers are starting to be attracted towards adopting alternative sources. The government should think whether the policies it has formulated are beneficial for the country. These policies of the government were going to pose a threat of a heavy import bill.”

Asif Sakhi said that due to the amendments in the Export Facilitation Scheme (EFS) budget for the current fiscal year, industry and agriculture have suffered losses, the textile and agriculture sectors have been severely affected, cotton deliveries to factories have decreased from 12 million bales to 5 million this year, industries are facing shortage of raw materials.

Vice President Nasir Khan said “there is a slight difference between net metering and net billing. We were told by the industry that the agreement was for net metering, however, the previous policy was formulated for net billing, and we demand that the policy of net metering be adopted instead of net billing.”

In response to a question, Nasir Khan said “the sale of tea, plastic, oil and other goods in the local markets after importing them in the name of FATA and PATA is causing a loss of Rs 700 to 800 billion to the national treasury. When the IMF has emphasized the abolition of all subsidies, then the subsidies given to FATA and PATA should also be abolished.”

Copyright Business Recorder, 2025