ISLAMABAD: Prime Minister Imran Khan said that Pakistan’s growing trade deficit influenced the government to seek assistance from the International Monetary Fund (IMF).
PM Khan said, “Although our exports are increasing, they are still less than imports. This causes pressure on our rupee, devaluation of our currency, and triggers inflation.”
Premier was speaking at the launching ceremony of Sohni Dharti Remittance Programme (SDRP), designed to encourage the use of formal channels for receiving remittances from overseas Pakistanis.
A per the criteria under Sohni Dharti Remittance Programme, Green category remitter will be awarded one per cent of up to $10,000 annual remittance, 1.25pc for Gold category sending from $10,001 to $30,000 and 1.5pc for Platinum category sending annual remittance of over $30,000.
According to this scheme, a mobile app, in English and Urdu, for iOS (Apple) and Android (Google) is available for overseas Pakistanis to download for registration and later on for point redemption at the PSEs.
A remitter can add one beneficiary relative and can transfer reward points to him/her for utilisation. A centralised back-end system is developed and run by 1-LINK.
PM Khan said that Pakistan would be making highest-ever exports in 2021-22, other matching economies till the 1960s like Singapore (now around $200 billion) and Malaysia (around $300 billion) were far ahead of the country in terms of their annual exports.
PM Khan said Pakistan had so far gone to the IMF to seek financial support for 20 times. He said with Pakistan’s economy growing and imports increasing, there was pressure on the current account balance. “When pressure comes on the current account, it also puts pressure on the rupee and we have to approach the IMF,” he added.
Mr Khan termed nine million overseas Pakistanis the country’s asset and urged his economic team to focus on incentivising and facilitating them for sending remittances and investing in the country through banking channels for a win-win situation.
He said the overseas Pakistanis should be treated as VIPs, because incentivising and facilitating them would benefit the country.
The Sohni Dharti Remittance Programme is a point-based loyalty programme under which remitters and their beneficiaries will accumulate reward points by sending remittances through formal channels (State Bank-regulated entities) and will redeem those points at participating public sector entities (PSEs) by availing their services free of cost.
Premier further stated the government would launch another programme under which the overseas Pakistanis would be able to purchase houses and invest in real estate in their homeland through Roshan Digital Accounts (RDAs) in a safe and transparent manner.
Khan said the banks would check and verify legal details of housing society so that the overseas Pakistanis could be protected from any fraud. He directed the planning division to offer tax incentives to the overseas Pakistanis on their investment in real estate.
The Public Sector Entities would offer special services for the entitled remitters, including on intentional air tickets of PIA, payment for extra luggage, mobile phone duty payment, purchase of vehicles, duty on imported vehicles, renewal of CNIC/NICOP, insurance premium, OPF school’s fee and purchases from Utility Store.
Further, the option of cash redemption is also being worked out.
Prime Minister Khan said Pakistan, which was ahead of countries like Hong Kong, Singapore and Malaysia in exports in 1960s, was now lagging behind due to past neglect and facing the issues of trade and current account deficits.
However, he noted with satisfaction that with growth in large scale manufacturing sector during the Covid-19 pandemic remaining on positive trajectory, enhanced remittances from overseas Pakistanis had helped bridge the gap in current account.
