Addressing the representatives of Money Exchange Companies His Excellency President Asif Ali Zardari recognized the importance of remittances as a major sector of economy and claimed to have had “increased” incentives to the expatriate Pakistanis. He quoted that while remittances during 2007 were around $6 billion, have now increased to $ 11 billion due to “incentives policy”.
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The day this news item appeared same day another news also appeared that Hundi transactions which had almost vanished after 9/11 have once again resurrected. A currency dealer wishing not to be named told the newspaper that Hundi offered more attraction than exchange companies as a remitter can get upto Rs. 2.50 per dollar higher than the banking rate.
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There is no denying the general belief one comes across almost daily on talk shows that our President appears to be kept ill informed by a dozen or so henchmen round him who ensure that no naked facts could land on his table. The undeniable fact is that since years no new material incentive for home remittances have been “increased” as wrongly claimed by the President. To the best of my knowledge though in the books listed there are many incentives but of no purpose to more than 95% of the Pakistani expariates. The only and only material incentive presently existing is a Rs. 500 yearly incentive in the shape of a free Passport costing Rs. 2000 valid for 5 years for those remitting Rs. 150,000 above yearly through legal channels. Declaration of expatriates as “ambassadors”, welcome counters on airports, so-called 15-20 seats for medical students are just good in books only.
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What is the actual situation that is well explanatory from a few years old report of Public Accounts Committee stating that Ministry of Overseas Pakistanis, Overseas Pakistanis Foundation, and Ministry of Foreign Affairs have no interest with Overseas Pakistanis while the Indian Government had done so and so for its expatriate workforce. I can not ever forget when our then Overseas Pakistanis Minister Ejazul Haq was to address us in Pakistan Club Bahrain in the evening asking for money for “Qaraz Uttaro” the next morning Philippines President was to arrive in Bahrain bringing also with him keys of houses his Government constructed for their Overseas Pilipino. Economically Philippines is much weaker than Pakistan even then it practically cares much about its expatriate workforce. For example it has allowed free medical treatment of parents of expatriates. The Philippine Overseas Workers Welfare Administration (OWWA) equivalent to our Overseas Pakistanis Foundation has introduced that the Filipino expatriates will now be entitled for loans of Pilipino Paisa 2 million. The Government has for this purpose set up a fund of Php 2 billion. This scheme has been introduced with a view those returning back home could establish themselves. The rate of interest is 7.5% per annum payable in 7 years with a two years initial grace period. An etc.
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On the other hand the fact is authorities in our case have no real interest in remittances or savings. The Pakistan Commercial Exporters of Towel Association a few months back come out in the press complaining about the discriminatory policy of the National Savings. The Association invested Rs. 15 million on 31 August 2009. It was deprived of increased profit announced effect 1st October 2009 on the plea that the increase was effective only on the new investors and not on the already ones. The Association suffered the same deprivation again when the profit was once more increased a few months later. The Association raised rightly a logical question that is this an investment friendly policy?
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The fact is the “unseen” forces never intend wish to see Pakistan economically strong and for that purpose any real investment friendly scheme as boosting of economy in real terms would earn more confidence in Pakistan, reduce dependency on world lending agencies which ultimate would cut chances of outflow of dollars and earning of international commissions. Six months ago a SBP delegation went Dubai for some economic boost purpose as the nation was told. I was then in 90s working abroad. A SBP delegation headed by Dy. Governor came Dubai in search of some loans when the international lenders had at that time for some political reasons toughened their stand. The Pakistani businessmen community from the Gulf Regional in a gathering in Pakistani Association Dubai talked with the visiting team that while it was negotiating hard on insulting terms with foreign financial sharks it may take loans in shape of deposits in the National Savings from them and the other Overseas Pakistanis on quite less rate but with guarantee for safety of their investment viz after investment terms & conditions would not be changed. The Team refused. During the last 20 years this senior citizen had at least more than 200 times raised the issue that the Government pays 5% more on home remittances. This 5% not be paid in cash but through a documentary transaction retained in a collective pool with the Government. To reduce any new burden on the Government even this 5% be taken as 2.5% from the Ministry of Foreign Affairs which collects annually millions from Overseas Pakistanis through Embassies in the name of unseen community welfare and the balance 2.5% be taken from Overseas Pakistanis Foundation whose whole fund is contributions from the Overseas Pakistanis. This 5% with each successive five percents remains invested collectively with the Government. When an OP finally and permanently then as unemployed returns back home he be paid all his collected 5 percents plus profit accrued thereon during all this long period which could sever as gratuity without Government spending even a single Rupee. Even the OPF so called created for collective welfare of OPs never ever took any interest in this issue and never responded me during all these 20 years. The reason all of this is that the day such schemes are introduced it would effect adversely the hundi, how then the bureaucrats and politicians would siphon out dollars to their foreign accounts, how would they purchase properties abroad. In this old age I do not remember to how many dozens like respectable Mr. Munno-Bhai, Mr. Istiaq Baid etc who regularly keep writing about Overseas Pakistanis I addressed this but perhaps the point raised by this old timer Matriculate passed without any copying or cheating does not contain any logic for these intellectuals. -
Today’s newspapers read that SBP was committed to “use” all possible means to make the banking services accessible to all. The true fact is banking services are being denied more particularly to Overseas Pakistanis. Five six years back I entered into My Bank in Karachi for opening of an account. I could not believe when the Manager told me when I would come back permanently to Pakistan only then I can open an account with them. Earlier just through a by post mail application forms submitted from abroad bank accounts in Pakistan used to be opened. During 1985 to about 1993 I arranged opening more than 5000 accounts by post mail with HBL, UBL and National Savings as I used to convince Pakistanis how safe and profitable it was to keep their savings in Pakistan. I addressed this refusal both to My Bank Head Office and State Bank never to get any response. The hurdles towards Overseas Pakistanis keeping their savings in Pakistan have increased with passage of time. It is claimed remittances from abroad are free of any levies. A Bank Draft arrived in my name from abroad prepared by UBL abroad creditable in UBL Karachi fetched not merely Rs. 40/- service charge for clearance but also Rs. 60 courier charge whereas no courier was involved within Karachi city limits as clearance is through SBP Clearance House. This was a sort of double tax. The Federal Ombudsman did not find any fault in UBL this pick pocketing from the foreign remittance Rs. 60 courier whereas not merely no courier was involved even then the cost of courier for ordinary customer within Karachi was Rs. 25/- and for bulk customers like UBL it was Rs. 4 only.
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Last but not the least two weeks back a Pakistani family told me there bank accounts have been blocked/made inactive as the Allied Bank of Pakistan Islamabad wanted these Overseas Pakistanis to furnish the Bank the documents showing their source of their income (abroad). This is the first time I have ever heard of bank wishing source of income from a foreign remitting account holder. This is the job of the country from where originating the money and no recipient in Pakistan. This tantamount nothing but creating a new hurdle and discouraging Overseas Pakistanis to keep their savings in Pakistan.
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Almost every month one reads in newspapers home remittances having increased the current month breaking the past records compared to same month last year. After however a week one reads in same newspapers foreign reserves have declined so many billions. Likewise once or twice a year one hear this and that country has promised to import from Pakistan 50,000 or workers which country on the other hand imposes ban on issuance of new visas to Pakistan. A layman like me can not understand how logically it was possible that when cost of living abroad is increasing manifold, foreign employers particularly in Middle East are reducing salaries/allowances as much much cheaper Bangladeshi/Indian labour, number of regular employed Pakistanis is decreasing in Middle East, saving is shrinking then how the remittances to Pakistan keep “increasing”. Earlier I had free tickets to Pakistan now not only I buy my own tickets but cost of air fare has tremendously increased. Before my family had free medical, today I have to spent lot. So from where remittances are increasing? The only naked fact which no one in our Government would like to really investigate is that with the help of foreign exchange companies and unofficial hand of some banking staff huge is through hundi siphoned out of Pakistan almost half of that for bank accounts in safe heavens and to Bangladesh/Malaysia/Dubai needing for shifting of industries there and almost half of this is re-sent to Pakistan as remittances to take advantage of tax exemptions. This increased inflow of remittances only is due to these things, for example "today’s read that during September to December 2010 short period a sum of Rs. 9,12,01,235 (plus Rs. 6,72,43,000) was received from Dubai in ABL Liberty Market Lahore Bank Account of wife of a prime accuse of NILC scam. Zafar Qureshi the investigating officer told the Supreme Court, as worded in the press, that he strongly apprehended that the money received in this account were actually transactions pertaining to money laundering. And this amount is “calculated” in our monthly “home remittances received”. PS: This senior citizen has lost one eye in operation and with only 25% vision in other has written this playing with key board without any drafting or post checking hence inconsistency expected.