ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Thursday said the country is paying half of the import bill through remittances therefore this sector should be given extra attention.
Overseas remittances play a vital role in boosting forex reserves and balancing trade deficit therefore steps must be taken to ensure its continued flow, said FPCCI President Abdul Rauf Alam.
He said that remittances have gone down in the first five months of this fiscal which should be noticed and steps should be taken to stem the fall. Alam said the government should ensure growth in remittances though various initiatives, including finding new markets. The president called for improvement in the existing system to encourage remittances which will strengthen forex reserves and help national development.
He said that Pakistan received 65 percent of the money from Middle East while the rest of the money comes from the US, the UK and other countries.
“Brexit and developments in America can have a negative impact on the remittances for which we should start finding solutions,” he underlined.
The sliding oil prices had destabilised the budgets of oil producing nations compelling them to cut development expenditures which damaged inflow of remittances but now oil prices are climbing which will result in increased remittances, he said. Stable oil prices will stabilise oil producing countries triggering demand for labour while it will result in budgetary problems for the oil importing countries, he said.
