ISLAMABAD : (Jan-31-2024) Former President of the Islamabad Chamber of Commerce and Industry (ICCI), Dr. Shahid Rasheed Butt, on Wednesday expressed concern over the continued fall in home remittances.
He said the country’s economic lifeline must be saved from the Hundi mafia and that the money received should be circulated, which has long been frozen in the unproductive property sector.
Shahid Rasheed Butt said in a statement issued here today that the government must find ways to encourage Pakistanis working overseas so that the volume of remittances could be increased.
Up to $ 30 billion a year is sent by Pakistanis living abroad. However, the banks withhold the dollars and pay the recipient families in local currency.
This is where the government’s interest ends. The money received is used to keep many families afloat, and a sizable portion of this capital is invested in real estate. The capital is stuck in property sector for years as investors wait for prices to increase, he informed.
The business leader said the property mafia plunders some hard-earned money. In contrast, the remaining money is frozen for many years in the property sector which could be used for national development.
He said that if this huge capital is directed to active sectors, it will play an essential role in developing industry and agriculture, but this has never been considered seriously.
The government should formulate a policy to put its money to use, which would lead to the country’s development and provide jobs to the people amid record unemployment, he demanded.
Shahid Rasheed Butt said that the target of remittances for the current financial year has been fixed at around $30.50 billion, which is difficult to achieve. According to the IMF, remittances will likely be reduced by one billion dollars.
He said that remittances in 2020-21 had reached a record of 31 billion 28 million dollars. But they recorded a sharp decline of $4 billion immediately after that, a significant economic blow.
The industry is suffering, agriculture and exports are not showing promising signs, and the IMF’s demand for a lifting import ban is becoming a real threat.
Therefore, he said, policymakers should focus on increasing remittances and take steps to ensure money circulation.
Elements involved in Hundi business should not be allowed to become a threat to the system, he demanded.
