Abu Dhabi: Pakistan expects a leap in remittances from its expatriates living the UAE this year due to incentives and appreciation offered for remitting the money through legal channels.
The remittances will reach at least $3.2 billion (Dh11.74 billion) in 2011, an increase of at least $1.2 billion over last year's figure of $2 billion, a top diplomat told Gulf News yesterday.
A Pakistani Government programme launched in January 2010 to encourage overseas Pakistanis to send money through legal channels has started making an impact, Jamil Ahmad Khan, Pakistan Ambassador to the UAE, said.
He spoke on the sidelines of an event at the Pakistan Embassy in Abu Dhabi to present appreciation certificates to Pakistani expatriates who remitted more than $15,000 through legal channels last year.
The ambassador presented certificates to 72 people yesterday. He said there are hundreds of people who deserve appreciation certificates and all of them will be awarded in due course.
Khan said the appreciation programme will be a continuous effort and similar functions will be organised to recognise all deserving expatriates.
Asked the way of verifying the remittances made by the expatriates, the ambassador said: "It is very simple, those who remitted more than $15,000 last year can submit the receipts of remittances to the embassy and they will be given the appreciation certificates. We don't depend on any other official verification in this regard."
About the huge number of expatriates remitting money through illegal channels, Khan said it is because of an unknown fear due to lack of awareness.
"Most of the Pakistani expatriates are uneducated blue collar workers. They have a misconception that if they remit money through legal channels, they have to pay some sort of tax to the Pakistani Government," he explained. The ambassador said he would like to reassure the community that there is no income tax or any other tax on the remittances from abroad. "There is no such law."
He said the Pakistani missions in the UAE will conduct continuous awareness campaigns to educate the community about the need to send remittances through legal channels.
"Moreover, it is free of charge to remit money to Pakistan through banks or exchange centres. There is no charge at all."
The ambassador said these measures will encourage more people to remit money through legal channels which will support Pakistan's economy.
By remitting through legal channels, the citizens are contributing to the country's economy, Khan said.
The expatriates who received the appreciation certificates said they would continue to remit money through legal channels as part of their patriotic commitments.
"I am doing so to support my country's economy," said Farman Hyder, a photographer in the capital.
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