Businessmen suggest curbs on foreign tourism

Estimate savings of $1 billion per year

KARACHI:

Economic observers have come up with a suggestion that the government should place a limit on all categories of foreign tourism, including the religious one for saving the already thin foreign exchange reserves of the country.

“While adopting austerity measures like cutting non-essential government expenditures and a freeze on replacement of vehicles by government officials, the government should limit the travel for Hajj, Umrah and pilgrimages to Iran, Iraq and Syria while exempting the first-timers who have never performed a pilgrimage,” said Pakistan Business Council (PBC) in a report.

“Estimated savings from a 25% reduction will be equal to $1 billion per annum,” the report said, emphasising that non-resident Pakistanis must use their foreign exchange savings abroad for the purpose.

“Pakistan should prioritise the use of its foreign exchange by restricting foreign tourism, including the religious travel, which costs as estimated $4 billion to $5 billion," said Aamir Allawala, CEO of Tecno Pack, while talking to The Express Tribune.

"Every flight that leaves the country eats up some foreign exchange," said Afsar Malik, an aviation expert. "When a plane lands at its destination, it has to pay various charges, which also include the landing fee. All of these payments are made in dollars," he pointed.

According to last year's data, out of the 15.5 million passengers who took international flights, approximately 5.5 million went to Saudi Arabia and for other pilgrimage.

“On average, a person going for Umrah spends around 15,000 riyals,” a spokesperson for Pakistan International Airlines (PIA) said while talking to The Express Tribune. PBC emphasised that there was no alternative to imports of essential items like fuel, food, drugs and input for export goods. However, transparency should be ensured while importing other items.