Dubai: More than 400,000 Pakistani expatriates in the UAE have signed a pledge promising to send money back home through legal banking channels.
This came as part of the Index Exchange’s campaign ‘Iss Baar, Hundi Pe Waar’ against illegal remittances. The campaign launched three months ago proved to be a roaring success as it reached hundreds of thousands of Pakistani expatriates especially the blue collar workers in the UAE.
Pakistan Ambassador to UAE Faisal Niaz Tirmizi lauded the Index Exchange for their pioneering efforts in the fight against illegal remittances.
Speaking at an event organised in Dubai to celebrate the success of the campaign, Ambassador Tirmizi emphasised on the detrimental impact of illegal remittance channels like ‘Hundi’ or ‘hawala’ on Pakistan's economy.
He noted that many expatriates are unaware of the illegality of these practices and stressed the importance of using legal channels to support Pakistan during critical times.
“We salute our blue-collar expatriates who are indeed the ‘unsung heroes’ for using legal channels to send money back home. Campaigns like 'Iss Baar, Hundi Pe Waar' launched by Index Exchange are crucial in raising awareness, and we, as the Pakistani mission in the UAE, fully support these efforts,” the Ambassador told the gathering in Dubai.
He urged the need for launching more such awareness campaign to educate expats about money-laundering laws and dangers of sending money through illegal banking channels. He also appreciated Index Exchange for giving incentives to expats who send money through legal banking channels.
Pledge
Over 400,000 Pakistani expatriates have taken a pledge against illegal remittances and have actively participated in a series of awareness and entertainment activities organized by Index Exchange as part of this campaign.
The event was attended by officials from Al Hail Holding Group, Index Exchange management and board, representatives from the Pakistan Business Council, prominent Pakistani businessmen, members of various Pakistani associations, and Pakistani banks.
Humayun Murad, Executive Director of Index Exchange, expressed his gratitude towards the community, stating: "We have been serving the community for the last 48 years and are committed to continuing our mission of promoting legal remittances and supporting Pakistan’s economy."
Syed Abdus Salam, Chief Operating Officer of Index Exchange, said the campaign was focused on strengthening Pakistan's economy through increased legal remittances.
He added: “The campaign against illegal remittances is a reflection of our commitment, aimed at bolstering the economy of Pakistan by encouraging legal remittance channels.”
Objectives
Mir K Rasool, Chief Business Officer of Index Exchange, briefed the audience about the campaign’s objectives, strategies employed, and the impactful results achieved.
He highlighted that legal remittances are a lifeline for millions of families in Pakistan, providing essential financial support and contributing to the country's economic growth.
He also noted that around 40 per cent of the remittances to Pakistan are still sent through illegal banking channels causing an estimated loss of $8 to $10 billion a year. "Pakistan's economy can improve further if these remittances are also sent through legal banking channels," he added.
“With the support of Abu Dhabi Police, Dubai Police, and other stakeholders, we have been successful in raising widespread awareness, and we are hopeful to see a significant increase in legal remittances.
The event also saw the honoring of business community leaders and professionals, followed by a cake-cutting ceremony to celebrate Pakistan’s 78th Independence Day.
Remittances
Pakistan, one of the top five recipients of remittances globally, with billions of dollars sent home by overseas Pakistanis every year, is expected to receive more than $33 billion workers’ remittances during the financial year 2024-25. It received $30.25 billion remittances in 2023-24 compared to $27.33 billion in fiscal year 2022-23, registering a year-on-year growth of 10.7 per cent after receiving record $3.24 billion in May 2024.
Overseas Pakistan residing in Saudi Arabia and the UAE continue to lead remittance table as they contributed over 40 per cent of total remittances in 2023-24 as they remitted $12.95 billion as against $11.18 billion in 2022-23, reflecting an increase of 15.82 per cent despite difficult economic conditions across the globe.
Workers residing in Saudi Arabia and the UAE remitted $37.74 billion during the last three financial years (2022-24) and are expected to sustain double-digit growth in coming years.
Global remittances
Globally, overseas Pakistanis sent $141.25 billion during the past five financial years (2019-24) and provided a much-need cushion to economy during the pandemic and slowdown in global econom
Analysts and economic experts said the country is expected to sustain strong double-digit growth in remittances this year due to increase in worker outflows in the past two years. They said increase in immigration to developed nations and Gulf states will play an important role in boosting remittances, addressing economic and social challenges as well as fostering a bright future of the country.
Migration
Latest data indicates that on an average 850,000 Pakistanis immigrated to other countries in last two years (2022-23) compared to average of 323,000 people between 2017-21, increasing total number of overseas Pakistanis to more than 11 million. The trend is expected to continue in coming few years that will ultimately help achieve up to $50 billion remittances annually by 2029-30 financial year.