Pakistan’s Remittances May Hit $50 Billion This Year, Claims Envoy

Pakistan has the potential to attract remittances of up to $50 billion this year after the government’s measures to streamline the mechanism to curb illegal hawala/hundi channels.

This was stated by Faisal Niaz Tirmizi, Ambassador of Pakistan to the UAE while addressing as the chief guest at the “Remitlink: Resilient Remittances” organized on Thursday by Dellsons Associate in collaboration with the Embassy of Pakistan in UAE.

He said the flow of remittances is returning to normal as the government has taken regulatory and stringent measures, including the massive crackdown against foreign currency smuggling.

Usman bin Raees, Chief Operating Officer Instant Cash, said remittances sent by Pakistani expatriates in the UAE could soon be delivered to the homes of the recipients, as per a new system proposed to counter the illegal hawala practice.

He said the proposed scheme would provide home-delivery of remittances to recipients and relatives of senders with security as compared to the existing practice of collecting remittances while standing in queues. This proposal is on the table of the State Bank of Pakistan central bank and they’re considering it, which is very encouraging, Raees added.

Salman Hasan Khan, Head of Priority Banking & PRI Dubai Islamic Bank Pakistan, said the financial institutions played a crucial role in connecting overseas Pakistanis with their relatives in their homeland, but these institutions are working continuously to facilitate the Pakistani diaspora in different states of the UAE.

He pointed out that Pakistanis in different countries prefer Islamic banking mode over the interest-based system, hence, there is a need to promote Sharia-based financial options with innovative technological solutions.

Ibrahim Amin, Chairman Dellsons Associates, said this conference aims to bridge the gap between stakeholders, including Government functionaries, regulators, and service providers such as banks, exchange companies, and fintechs.

He said the remittances from the Gulf countries have a vital role in shoring up the macroeconomic indicators of the country, including the current account and the stability of the Rupee against foreign currency, hence, overseas Pakistanis and their contributions should be appreciated through facilitation and incentives.

UAE is the second largest host country of Pakistani expatriates. Over 1 million Pakistanis moved to different states of the UAE in the last one and a half years.