In a bid to address the escalating issue of illegal transfer of foreign currencies outside Pakistan, the Pakistan Hotels Association has submitted proposals for the budget of 2023-2024.
These proposals emphasize the need for prompt measures to curtail the outflow of foreign currency and boost the country’s economic stability. By taking decisive actions, Pakistan can safeguard its tourism industry, stimulate local trade, and foster trust among investors. Here are the key suggestions put forth by the association:
Removal of Artificial Controls on USD:
The association proposes eliminating artificial controls on the US dollar and allowing its value to be regulated by fair market forces. This adjustment would promote transparency and stability in the foreign exchange market.
Curbing Unnecessary Imports:
To generate local revenue and support domestic industries, the association advocates for curtailing unnecessary imports. This approach will reduce the reliance on foreign goods and boost the production and consumption of local products.
Bridging the Gap between Government and Forex Companies:
The association recommends resolving the deadlock and price gap between the government and forex companies. By establishing fair and transparent exchange rates, confidence in the foreign currency market can be restored.
Facilitating Remittances by Overseas Pakistanis:
Efforts should be made to simplify the process of remitting foreign currency by overseas Pakistanis. Enhancements to the Roshan Digital Account system, which enables digital banking services for non-resident Pakistanis, would facilitate smoother transactions.
Encouraging Investment by Overseas Pakistanis:
Incentives, such as investment schemes and benefits/discounts on purchases or investments in industries, should be introduced to motivate overseas Pakistanis to invest in their homeland. Additionally, the government must guarantee the security of these investments.
Strengthening Trust in the Stock Exchange:
Measures should be taken to develop trust and confidence among investors in the stock exchange. If necessary, the government should review taxation policies, particularly concerning dividends, to strike a balance between attracting investments and ensuring fair taxation.
Strengthening Trust between the State and Public:
In order to overcome the current economic crisis, it is crucial to build stronger trust between the state and the public. Immediate and necessary actions should be taken to restore confidence in the government’s ability to address the situation effectively.
The Pakistan Hotels Association has outlined a series of measures that Pakistan should swiftly implement to counter the outflow of foreign currency. By embracing these proposals, the country can mitigate the impact on its tourism industry, address inflationary pressures, promote domestic industries, and foster a sense of trust among investors. Urgent actions are required to stabilize the economy and ensure a sustainable future for Pakistan.