Govt, SBP encouraging legal way for money transfer

F.P. Report

KARACHI: The Chairman of National Business Group of FPCCI, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Thursday welcomed unprecedented increase in home remittances terming it result of enabling policies of the government.

The remittances are increasing at a pace which has surprised foreign and local experts and it is reducing the burden on the government. He said.

Mian Zahid Hussain said that a study is needed to ascertain reasons behind increased remittances which have reached to an average of 2.35 billion dollars per month during the first seven months of this fiscal.

Talking to the business community, the veteran business leader said that Prime Minister Imran Khan is very happy over the development therefore he should take steps to continue the momentum.

He said that despite the closure of businesses and loss of jobs overseas Pakistanis have increased remittances by 24 percent. Coronavirus has not only damaged the global economy but also dealt a blow to illegal money transfers, which has become difficult due to travel restrictions.

The government and State Bank have also introduced reforms which have encouraged Pakistani diaspora to opt for legal channels. The SBP has also introduced Roshan Digital Accounts in which expats have deposited around half a billion dollars which indicate the success of the initiative.

He noted that remittances are increasing at a time when the economy is stabilising resulting in increased imports which is widening the deficit while collapsing of the cotton crop and scarcity of food items is also putting pressure on forex reserves.

The government should discourage currency smuggling and direct banks to reach the unbanked population to increase the flow of remittances, he demanded.