Islamabad
Pakistan Economy Watch (PEW) on Sunday said global economic slowdown can hit remittances and leave many expatriates jobless.
The government should make aproper strategy to deal with the looming threat which is result of coronavirus and oil price slump, he said.
PEW Chairman Aslam Khan said that international financial system is under stress which call for immediate steps to save country from problems.
He said that remittances play a very important role in the economy and decision to waiver withholding tax on the same from July 01 will discourage the illegal transfer of funds and encourage legal procedure which will support forex reserves. He said that remittances have increased by 5.37 percent in the first eight months of the current fiscal which is a welcome development.
However, he cautioned that coronavirus has damaged economic activities across the world including the countries from where Pakistan receives worker remittances.
The countries from where Pakistan receives billions of dollars as remittances include Saudi Arabia, UEA, US, UK etc. which are facing virus issues and oil price collapse.
The global economic scenario can leave many Pakistanis unemployed which can negatively impact remittances and put pressure on forex reserves, therefore, government should make a proper strategy without delay, he demanded.
He lauded the move of the government to automate the export rebate and duty drawback system which will reduce complaints and improve exports.
Payment of customs rebate and drawback of local taxes and levy without human involvement immediately after realisation of export proceeds from the country will enable exporters to play their role in national development with peace of mind, said Chairman Brig. Muhammad Aslam Khan (Retd).
He said that the new system will automatically transfer the amount to the account of exporters adding that the transparency will encourage twenty-six sectors of the economy to increase their exports while encouraging SME sector to expand their export operations.—INP
