KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has raised alarms over a potential decline in workers’ remittances due to increasing Gulf visa rejections, ARY News reported on Friday.
FPCCI Senior Vice President Saqib Fayyaz Magoon warned that the ongoing visa issues could result in a 20 to 25 percent decline in remittances this year, significantly impacting Pakistan’s economy. Despite previous assurances that FPCCI-backed letters would facilitate approvals, nearly 50 percent of visa applications are now being rejected.
A Threat to Economic Stability
With Pakistan’s exports totaling $22 billion against imports of $37 billion in the last eight months, workers’ remittances play a crucial role in bridging the trade gap. Any sharp decline in these inflows could further weaken the rupee and strain the country’s financial stability.
During a press briefing in Karachi, FPCCI officials urged the Ministry of Foreign Affairs to take immediate action. They emphasized that if concrete measures aren’t implemented, the situation could further deteriorate, exacerbating Pakistan’s economic vulnerabilities.
Calls for Government Intervention
Industry leaders highlighted the need to resolve Gulf visa hurdles to protect both the welfare of Pakistani workers abroad and the country’s economic equilibrium. They warned that a prolonged decline in remittances could hurt domestic industries, widening the trade deficit and slowing economic recovery.
Pakistan’s Visa-Free Entry Policy for Gulf Travelers
In contrast to the tightening Gulf visa policies, Pakistan last year introduced a visa-free entry policy for travelers from Gulf Cooperation Council (GCC) countries—including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE—allowing stays of up to 90 days to encourage tourism and investment.
However, with Pakistani workers facing increasing barriers abroad, FPCCI has urged the government to push for reciprocal ease of movement, ensuring that Pakistanis continue to contribute to remittance inflows without unnecessary bureaucratic hurdles.
