The experts on Sunday urged the authorities concerned to make arrangements to stop remittances from flowing through informal and illegal channels such as private individuals or “hawala/hundi” networks.
“The importance of regulated and legal remittances can be judged by the figures revealed in a World Bank report as the bank underscored that Pakistan received $31.4 billion as remittances (regulated) only in 2022,” said the Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha.
He stated that this influx of foreign currency serves as a vital lifeline for the country’s economy, supporting families, businesses, and overall development.
Read Remittance inflow shows marginal improvement of 5%
According to the details, unlawful routes of remittances caused massive financial loss in the country as over $4 billion was transferred to Pakistan through black market forex trading, resulting in decreased remittances that stood at a mere $27 billion in FY23.
The ECAP general secretary applauded the government's efforts to stop such illegal activities. “The government has started a countrywide crackdown against the black market flow of remittances to aid the country’s declining foreign reserves. The action anticipates massive recovery, presently recorded to be over Rs900 million within just two months, and indicates substantial growth in regulated remittance inflows to Pakistan,” he said.
Published in The Express Tribune, December 25th, 2023
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