Dr Pasha Appreciates $29.4b Foreign Remittances

Former finance minister Dr Hafeez Pasha has appreciated the record remittances of US$29.4 billion, sent by the overseas Pakistanis

LAHORE, (UrduPoint / Pakistan Point News - 27th Jul, 2021 ) :Former finance minister Dr Hafeez Pasha has appreciated the record remittances of US$29.4 billion, sent by the overseas Pakistanis.

He was speaking as chief guest in an economic session on 'Pakistan Economy-Challenges & Solution', organised by the Pakistan Industrial and Traders Association Front (PIAF), here on Tuesday. The session was also addressed by FPCCI former president Mian Anjum Nisar, PIAF Chairman Mian Nauman Kabir and senior journalist Sikandar Lodhi.

Dr Pasha said that the remittances would decline next year as Pakistan spent around US$3-4 billion annually on foreign travels, which had been saved this year, thus lifting the remittances figure.

Dr Pasha said that there might be difficult times ahead, as the country recorded high import figure of US$6.3 billion in June this year while the current account deficit remained US$1.3 billion in this period.

In his address, FPCCI former president and Businessmen Panel Chairman Mian Anjum Nisar stressed the need for more comprehensive and effective measures to enhance exports, besides keeping a check on unbridled imports of luxury items.

He suggested the economic managers should chalk out a long-term plan for import substitution and increasing exports so that Pakistan could become self-reliant. He also called for adopting international best practices in priority sectors and consultations with international experts to achieve high targets.

PIAF Chairman Mian Nauman Kabir said that fiscal sustainability had become a major issue of Pakistan's economy, as its debt servicing accounts had reached more than one-third of its Federal budget.

Later, in a question-answer session, Dr Hafeez Pasha stressed the need for at least 7 per cent GDP growth rate to absorb the large number of unemployed youth, eradicate poverty and to manage the rising public debt. For this purpose, the country needed an equitable taxation system and high growth in exports, he added.

Dr Pasha said that Pakistan Bureau of Statistics needed to be further strengthened so that it could calculate official figures accurately. "Our industry contributes more than 70 per cent to tax revenue, as industrial sector gives almost Rs 3.5 trillion taxes in various forms. On the contrary, the Rs 25 trillion's real estate sector pays just Rs 12 billion tax, which is totally unjustified. In the same way, 22 per cent agriculture land, which is owned by just one per cent of landlord elite, shares only Rs 2.5 billion in tax revenue," he responded to a question.

Dr Hafeez Pasha also announced launching his new book "The Charter of Economy" from the platform of PIAF.