Economy cannot sustain sans remittances: FPCCI

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Thursday asked the government to take concrete steps to boost remittances which are lifeline of economy facing dwindling exports due to global recession and multiple growth challenges.

More than six million Pakistanis are working abroad sending over 19 billion dollars yearly which helps government keep trade gap in limits as we consume more than what we produce, said Abdul Rauf Alam, President FPCCI.

He said that remittances were growing by 15 percent per annum since six years but latest figures indicate a fall which is enough to raise concerns about stability of economy.

Rauf Alam asked government to improve functions of departments dealing with export of manpower and those responsible for the welfare of expatriates as complaints are pouring in regarding apathy from different quarters.

The FPCCI president said that law enforc- ing agencies should be able to distinguish employment promoters from human smugglers and should not harass those who are responsible to get foreign exchange for the country and reduce unemployment. The law enforcing agencies should not harass people before getting permission from the regulator and try to stop misuse of remittances by some elements, he said.

Growth in remittances has always been remained more than growth in the exports despite best efforts of the government and private sector to boost the later, he observed.

He also demanded of the government to establish training institutes as country is failing to fulfil the demand of skilled labour at home and overseas otherwise the issue of economic stability will resurface soon.

The economic growth projected by the international institution will be significantly lower than the rate required for absorbing the youth seeking jobs which can be resolved through tax and structural reforms and investment which is very low.