How can we support Pakistan,

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Foreign remittance is a major source of property business in Pakistan. I have found some useful facts & figures from different sources to initiate a healthy discussion & invite your proposals over “How can we support Pakistan”.

Expatriates of any nation are its ambassadors. In case of Pakistan, they are not only one of the top brains of the nation but also some of the energetic arms of the nation as well. Remittances from overseas Pakistanis rose 32 per cent year-over-year to approx. $7.5 billion in 2009 equivalent to about 5 per cent of Pakistan's gross domestic product. Some estimates indicate the formal remittances account for less than half of the actual amount sent to Pakistan; gifts, donations & other assistances aside. The increasing remittance from Pakistani diaspora is the best way to "get rid of dependence" on international lenders (Shaukat Tareen, ex-Finance Minister). It is still believed that a substantial increase in remittance can be achieved if the expats are encouraged by the legal & constitutional coverage of their funds.

The remittance dollars pour into the nation's economy offer the much needed lifeline to the poor in the midst of multiple and serious crises confronting the people of Pakistan. Not only do these remittances dwarf the foreign loans and aid received by Pakistan, the money remitted is far more effective in helping the national economy in the following important ways:

1. Unlike foreign aid, the remittance money from overseas Pakistanis comes with no strings attached. These dollars do not serve the geopolitical interests of any foreign power. Nor are the funds used to pay for unnecessary imports or to pay expensive foreign consultants and contractors from donor countries.

2. While foreign assistance dollars are funneled through the government, the bulk of the remittance money goes directly to the people and it does not feed graft which siphons money into foreign bank accounts of corrupt politicians and bureaucrats.

3. The remittance money has a significant stimulus effect on Pakistan's economy. It invigorates the local economy because it is spent by the people to buy mostly domestic products and services that create more jobs which support more local consumption, and create even more employment opportunities.

On the other hand, in India non resident Indians (NRIs) remitted $55 billion in 2009 (was $20b in 2005) and stood No.1 in the world, around 17% higher than what the World Bank had projected for the year. The Indian govt. facilitate their expats by extending broad-based insurance, relaxation in investment in various sectors including stock exchange, travel & tourism, customs, & especially remarkable banking facilities including transfers, acceptance of their local bank’s checks to many foreign banks abroad, withdraw money at the time of their need, investment proposals for NRIs & a number of forex transaction facilities. It is not only the case of India; many other countries also honour their expats & facilitate them to invest back to their home country.

The need of the time is to have a clear-cut govt. policy to tap these resources.
:pkf