Pakistan has the potential to attract up to $50 billion in remittances this year, thanks to government measures aimed at curbing illegal hawala/hundi channels, according to Faisal Niaz Tirmizi, Pakistan’s Ambassador to the UAE. Tirmizi made this statement while addressing the “Remitlink: Resilient Remittances” event, jointly organized by Dellsons Associates and the Embassy of Pakistan in the UAE.
Tirmizi noted that the flow of remittances has returned to normal as the government has taken regulatory and stringent measures, including a crackdown on foreign currency smuggling. These efforts have not only streamlined the remittance process but also curbed illegal channels.
Usman bin Raees, Chief Operating Officer of Instant Cash, proposed a new system that could facilitate the home delivery of remittances to recipients and the relatives of senders. This system aims to counter the illegal hawala practices and enhance the security and convenience of remittance collection, as it eliminates the need for individuals to stand in queues. Raees mentioned that the proposal is currently under consideration by the State Bank of Pakistan, signaling a positive development in the facilitation of remittances.
Salman Hasan Khan, Head of Priority Banking & PRI at Dubai Islamic Bank Pakistan, emphasized the crucial role that financial institutions play in connecting overseas Pakistanis with their relatives in Pakistan. He noted that Pakistanis in different countries prefer Islamic banking options over interest-based systems. As a result, he stressed the need to promote Sharia-based financial solutions with innovative technological advancements.
Ibrahim Amin, Chairman of Dellsons Associates, highlighted the conference’s purpose: to bridge the gap between stakeholders, including government officials, regulators, and service providers such as banks, exchange companies, and fintechs. Amin stressed the importance of acknowledging the contributions of overseas Pakistanis and providing them with incentives and facilitation.
The UAE, hosting over 1 million Pakistani expatriates, stands as the second-largest host country for the Pakistani diaspora. Their contributions, particularly through remittances from Gulf countries, play a vital role in supporting Pakistan’s macroeconomic indicators, including the current account and the stability of the Rupee against foreign currencies. These measures aim to further strengthen the ties between overseas Pakistanis and their home country.
