Work visa issues in Gulf countries may impact Pakistan's remittance inflow
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called on the federal government to take urgent steps to address the issue of Pakistani workers being denied work visas by Gulf countries, warning that the situation could lead to a decline in remittances.
Addressing a press conference, FPCCI Senior Vice President Saqib Fayyaz Magoon said the visa issue had already been raised with Gulf embassies, yet 50% of visa applications were still being rejected, even those submitted through FPCCI's facilitation.
"Remittances increased over the past eight months, but the trend may reverse if this issue persists," Magoon said, urging the Ministry of Foreign Affairs to intervene.
The business leader also criticised recent changes to the net metering policy, stating that the original agreement was based on unit-for-unit compensation, not the new net billing system, which he said was creating uncertainty for solar users.
'A unit bought from a user at Rs27 is being sold back at Rs50. That's not what was agreed under net metering,' he added, welcoming the cabinet's decision to defer the Rs10/unit solar buyback policy.
Magoon said the repeated changes in energy policy, without consultation, were discouraging investment and undermining confidence.
He also flagged concern over the imposition of 18% sales tax on local supplies under the export facilitation scheme, saying it had negatively affected both the textile and agriculture sectors.
'Cotton production has dropped from 12 million to 5 million bales. We're importing cotton and yarn while local bales go unsold,' he said, demanding tax exemptions for local suppliers, similar to those offered on imported materials.
Magoon warned that the only way to reduce reliance on the IMF was to support domestic industry. 'Without strengthening local industries, we cannot break free from the IMF's grip,' he said.
He shared that during the last eight months, Pakistan recorded $22 billion in exports and $37 billion in imports, while $24 billion in remittances helped offset the trade deficit. 'The path to prosperity lies in boosting exports and supporting local industry,' Magoon concluded.
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