In February, Pakistan’s Finance Minister Ishaq Dar approved a plan proposed by charitable organizations to raise around $2 billion from overseas Pakistanis.
The fundraising was supposed to be “interest-free” for five years and was announced at the National Islamic Economic Forum’s event in Karachi, where a roadmap was defined for the Islamization of Pakistan’s economy.
However, there has been little to no progress on the initiative more than two months later, even as Islamabad works to secure financing support to meet a crucial requirement of the International Monetary Fund (IMF) to revive its stalled bailout program.
Business Recorder
During an interview with Business Recorder last week, Bashir Farooqi, the chairman of Saylani Welfare International Trust, stated that his organization and other welfare groups have urged overseas Pakistanis to contribute to the country’s progress by depositing their dollars with the State Bank for five years.
Farooqi expressed optimism that this initiative could generate a $2 billion inflow. He added that the proposal had been submitted to the government, and that meetings had been held, but progress has been slow.
Farooqi expressed
Farooqi revealed that his group had met with Finance Minister Ishaq Dar twice, once through a video call and once in person at the Prime Minister’s House. Additionally, they had met the State Bank Governor twice, and Amjad Saqib, the chairman of Akhuwat Foundation, had even met with the Prime Minister.
Despite the potential benefits of the proposed initiative to help Pakistan overcome its Letter of Credit (LC) crisis, no government official has yet offered their support. As the fifth most populous country in the world, Pakistan is currently grappling with a severe economic crisis marked by record-breaking inflation and dangerously low foreign exchange reserves.Pakistani
To address these challenges, Islamabad is in talks with the International Monetary Fund (IMF) to receive a $1.1 billion tranche of support. However, negotiations have stalled due to a condition of external financing support that has only trickled into Pakistan.
Moreover, the country’s currency has reached historic lows, although it experienced minor gains last week. With reserves at less than one month of import cover, the central bank has imposed restrictions in an effort to control the current account deficit.
Bashir Farooqi
Bashir Farooqi, the chairman of Saylani Welfare International Trust, remarked that Pakistan is facing unprecedented challenges, as industries have been prohibited from importing raw materials. Pakistani
In the past, people would spend extravagantly on events, importing flowers worth Rs2 million for a two-hour wedding. Now, even financially stable companies are closing down, and the situation for those who have lost their jobs is unimaginable.
Pakistan’s problems
Farooqi suggested that fear might be motivating the government’s reluctance to support the proposed initiative. He speculated that the government may be afraid that if Pakistan’s problems were resolved, people would lose interest in voting for them. The finance ministry did not provide a response when approached for comment.Pakistani
Pakistan’s issues
Pakistan’s issues with its balance of payments are only the tip of the iceberg. A lack of investment in human capital and public infrastructure has driven foreign investors to more attractive markets. Domestic political instability has also deterred new investment. The country’s economic growth is projected to be only 0.5% this fiscal year, resulting in significant unemployment.
According to Bashir Farooqi, the chairman of Saylani Welfare International Trust, Pakistan is currently experiencing unprecedent ed challenges as industries are prohibited from importing raw materials. He noted that in the past, people would spend extravagantly on events, importing flowers worth Rs2 million for a two-hour wedding. However, financially stable companies are now closing down, and the situation for those who have lost their jobs is unimaginablePakistani.
Farooqi suggested that fear may be behind the government’s reluctance to support the proposed initiative. He speculated that the government may fear that if Pakistan’s issues were resolved, people would lose interest in voting for them. The finance ministry did not provide a response when asked for comment.Pakistani
Unemployment.
Pakistan’s issues with its balance of payments are only the beginning of its problems. A lack of investment in human capital and public infrastructure has driven foreign investors to other markets. Domestic political instability has also hindered new Pakistani investments. The country’s economic growth is expected to be just 0.5% this fiscal year, resulting in significant unemployment.
