IN recent weeks, encouraging news has continued to emerge on economic front, painting a picture of resilience and hope amidst challenges. One particularly bright spot is the remarkable increase in workers’ remittances from overseas Pakistanis, which reached a substantial $2.85 billion in September 2024. This impressive figure has propelled the cumulative remittances to an unprecedented $8.8 billion in the first quarter of current fiscal year.
These strong inflows are not merely numbers; they hold the potential to stabilize the rupee, bolster foreign exchange reserves, and provide essential support to import-dependent economy. The significance of these remittances extends beyond mere economic metrics; they are vital in containing the current account deficit and ensuring the timely repayment of maturing foreign debt, thus reinforcing the country’s financial stability.One key factor contributing to this surge in remittances is the shift among non-resident Pakistanis towards legal channels such as banks and exchange companies, rather than relying on informal hawala-hundi networks. This transition is largely attributed to more favourable conversion rates offered through official avenues. Additionally, the concerted efforts by the government, the central bank, and law enforcement agencies to crack down on illegal currency markets have dismantled many hawala-hundi operators- the dividends of which are visible. While we appreciate immense contributions of overseas Pakistanis to our economy, it is crucial to recognize that there is still much work to be done to fully harness this potential. The engagement of affluent overseas Pakistanis should be a priority, and the government must create special incentives for them to invest in Pakistan. By fostering an environment that encourages investment, we can transform the economic landscape of our nation, much like other countries that have seen significant growth driven by their expatriates’ contributions. Investments from overseas Pakistanis can catalyze development across various sectors, from infrastructure to technology, ultimately leading to job creation and economic diversification. By actively involving these key stakeholders, we can ensure that their remittances do not just remain a lifeline, but also become a driving force for sustainable economic growth.
