Lahore Chamber of Commerce & Industries (LCCI) emphasize to give incentives to overseas Pakistanis to multiply foreign remittances.

Lahore Chamber of Commerce and Industry (LCCI) President Kashif Anwar, Senior Vice President Zafar Mahmood Chaudhry, and Vice President Adnan Khalid Butt have emphasized the importance of trust building, encouragement, and incentives for overseas Pakistanis to increase foreign remittances, which play a major role in the country’s economy.

In a statement, the LCCI office-bearers highlighted that remittances in 2022-23 had decreased by approximately four billion dollars, dropping to $27.3 billion compared to $31.3 billion in 2021-22. They attributed this drop to the difference between the inter-bank and open market dollar rate, which has now been resolved, leading to expectations of sound growth in remittances in 2023-24. The first three months of the financial year (July-September 2023-24) witnessed remittances totaling $6.3 billion.

To ensure these remittances are utilized in productive sectors, the government needs to take measures. The LCCI office-bearers suggested that if the government announces incentives for investment made by expatriate Pakistanis, foreign remittances could potentially reach $50 billion in the coming years. They recommended encouraging expats to invest in sectors like energy, agriculture, telecommunications, and information technology, stating that many overseas Pakistanis are eager to invest in their home country.

Discouraging the use of the Hawala system, an illegal means through which billions of dollars are sent annually, is also crucial, according to the LCCI office-bearers. They believe that boosting home remittances would provide much-needed support amidst the country’s economic challenges. Additionally, increasing home remittances would help narrow the current account deficit, build foreign exchange reserves, stabilize the exchange rate, mitigate inflationary pressures, and reduce the need for borrowing.

Overall, the LCCI office-bearers emphasized that a rise in foreign remittances would pave the way towards a self-reliant economy, and urged the government to prioritize the promotion of trust, incentives, and productive investments by overseas Pakistanis.

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