Importance of overseas Pakistani for economy emphasised

[Naveed Yaseen]

KARACHI: Businessmen, politicians and money transfer managers on Monday agreed on importance of increase in foreign remittances to broader economic stability.

They also sought to understand and solve the problems of overseas Pakistanis, which are mostly laborers working aboard and sending back home much-needed foreign exchange.

Speaking at a function jointly organized by Karachi Chamber of Commerce and Industry (KCCI) and Western Union, Federal Minister for Overseas Pakistanis Dr Farooq Sattar said government is studying new ways to attract remittances from abroad.

He said technology will be used to make easy the process for expatriates to remit money back home to their families. “But for increasing the remittances we need to inculcate confidence in overseas Pakistanis.”

Referring to increasing acts of terrorism in the country, he emphasized on immediate action to counter the extremist ideology, which is fast changing the fabric of the society.

Sobia Rehman, Western Union’s regional manager for Pakistan and Afghanistan, said home remittances are increasing despite all the worries related to political and economic situation.

She said overseas Pakistanis must be educated about the importance of using legal channels to remit money to their families. “Actually, they use Hawala just because they don’t know that a better alternative exists.”

Anjum Nisar, President KCCI, said only more exports and remittances can solve the economic woes of the country. He decried that Pakistan has lagged behind even Vietnam, which has scaled up its exports to $55 billion now from only $2bn in 2002.

He said government should withdraw service charges on foreign remittances through banking system to encourage overseas Pakistanis to remit through formal channels.

Pakistan received $6.5bn as remittances last fiscal year and economic managers intend to increase that to $7.5bn this year. Remittances are playing crucial role in stabilizing rupee-dollar exchange parity.

http://www.thenews.com.pk/daily_detail.asp?id=170034