Overseas Pakistanis should be given more incentives to prompt them to send remittances home through legal channels, according to Hassan Raza, head of structured credits and global remittance business at Habib Bank.
In Saudi Arabia and the UAE, the construction sector is booming and they are hiring workers from Pakistan.
According to the official statement, they have a plan to hire 500,000 more labors. It would ultimately enhance the remittance volume to Pakistan.
Some important measures need to be taken to educate labors to send their remittances legally, Raza told Arab News in an exclusive interview.
Excerpts:
As you said, there is a need to boost remittances. So, what measures are you going to take to achieve the four to five million Pakistani rupee remittance target?
For this, we will have to take two to three important measures. Initially, there is a need to educate people to send their remittances legally. This will be beneficial to them. Furthermore, nobody will ask them the source of their money. Still, people send their money through illegal ways, but with persuasion from the State Bank, PRI and scheduled banks, the number of legal remittances are growing gradually. There is also a need to raise awareness among laborers. As they leave Pakistan for jobs, they should always adopt legal ways to send their remittances. The labors are mostly recruited through government agencies or government authorized agencies, but once they go they get trapped by illegal agents there.
Is it possible to offer incentives in air tickets or other travel facilities for the relatives of overseas Pakistanis here?
Exactly, you are right. This should be implemented. The Pakistan government has already issued the card, but most of the people are not aware of these facilities. Such types of incentives are beneficial for the people. I have already discussed this s topic here with different people and they opine that relief should be given to overseas Pakistani in custom duties, or if he is bringing car with him he should be given relaxation in custom duty. In my opinion, depending on the remittance volume, he should be given VIP treatment at Pakistan s airport.
Pakistan receives $14 billion foreign exchange and takes a $6 billion loan from the IMF. Hence overseas Pakistanis should be given more importance and offered lucrative incentives. Isn’t it?
I totally agree with your perception. When we interact with our labor community we offer them gifts, we share their happiness as well. We offer them prizes through raffle draws. Similarly they get some benefits and recognition and I agree with you such benefits should be given at government level as well. In Saudi Arabia and the UAE, construction work is booming and they are hiring workers from Pakistan. According to the officials, they have a plan to hire 500,000 more labors. It would enhance the remittance volume in Pakistan. Some important measures need to be taken to encourage labors to make legal remittances.
Are our embassies in the Middle East helpful and what are their initiatives?
First of all, we have to prioritize our objects. Usually, overseas Pakistanis send their remittances from all over the world but a big chunk is received from Middle East. Our embassies help in the matter, but there is much more to be done. On our Independence Day, they hold functions and Pakistanis participate in them. That provides an opportunity to us. Furthermore, when the consulate staff visit labor camps, they can educate our people to send their remittances legally. It would bring some improvement. It is a national cause and every one of us should play our role. In this regard, Philippines can be taken as a role model for us. That country also receives a significant volume of foreign exchange.
You have mentioned the rebate problem. If this problem is not solved how would you be able to achieve your targets?
To resolve this issue, I discussed it with the government authority and urged the State Bank too though the present government has taken some measures to resolve the issue bringing some improvements as well. Our Finance Minister Ishaq Dar has promised to release some more funds for this purpose. This rebate issue is a talk of the town and the disbursement should be in time to expedite foreign exchange.
Why to break the transaction in parts and why the SR25 policy is still valid?
This should be abolished, but the banks have already done a lot of work on it. You can observe yourself. If someone is sending money four times in that way, banks and the State Bank can check him easily. That is not an easy task now.
What are the new products to be introduced in the markets in the near future?
If you observe, banks have same type of products. Two years ago we introduced our main product, which is called Cash Over the Counter (COC). This product has gained significant popularity among the customers. The other products are Account Credit and Account to Account. Another product is Third Party Payment. For example, if someone sends me money and he has an account in another bank, I send that in his particular bank account and it will be credited to his account. With the technological advancement, receiving and paying the amount can be done very promptly. One more is Pardes Card. The State Bank also showed a lot of interest in it. It is like a prepaid card. If someone sends you the money, the card gets loaded up promptly. That card can be utilized at the bank and anywhere else simply like your ATM card. It is free from withholding text, and interest and profit are also offered on it. It is equal to opening your account. Once you receive that card, you don’t need to visit your bank. As someone sends you the money, your card will be loaded up automatically. But I would also explain to you that the card could not gain as much popularity as it should be. I think people still prefer to visit their bank branch for transactions. I reiterate that the people who send remittances must be given more incentives.
Habib Bank to expand remittance business
Habib Bank to expand remittance business
King Abdulaziz University hosts National Development Fund’s governor at panel discussion
- Stephen Groff looks at achieving aims of Saudi Vision 2030
RIYADH: King Abdulaziz University hosted Stephen Groff, the National Development Fund’s governor, in a panel discussion at the Academic Dialogue Table organized by the Faculty of Economics and Administration.
Groff discussed the role of the NDF and the broader development ecosystem in achieving Saudi Vision 2030, in an event also attended by Dr. Tareef Al-Aama, the university’s president.
Groff said that the fund aimed to enhance developmental impact and improve productivity, highlighting the key strategic priorities and ongoing initiatives being provided to entities under the fund’s umbrella, such as economic diversification and growth stimulation.
He added that the NDF contributed to creating sustainable job opportunities as well as supporting small and medium-sized enterprises and entrepreneurship.
FASTFACT
Groff stressed that one of the fund’s core missions was to develop infrastructure by financing large-scale project.
Groff stressed that one of the fund’s core missions was to develop infrastructure by financing large-scale projects in sectors such as transportation, housing, and public utilities through its affiliated entities, including the recently established National Infrastructure Fund.
He explained that the primary mission of the fund, as a development finance institution, was to empower development funds and banks to achieve their sector-specific objectives, beneficiary goals, and activity targets, while focusing on specific areas and ensuring the financial sustainability of development finance entities in the future.
He concluded by stressing the critical role of the fund in reviewing and evaluating the impact of every program, project, or initiative aimed at addressing developmental needs, economic priorities, challenges, and available opportunities.
‘Eltiqa’ returns to Riyadh with Saudi and Brazilian arts
- CONEXAO exhibition aims to foster cultural exchange between the Kingdom and Brazil
RIYADH: The Confluence of Saudi-Brazilian Culture, or CONEXAO, will be held in Riyadh from Jan. 30 to Feb. 1, under the patronage of the Saudi minister of culture and chair of the board of trustees of the Royal Institute of Traditional Arts, Prince Badr bin Abdullah bin Farhan.
The exhibition, to be held at the King Fahad Cultural Center in Riyadh under the theme “Eltiqa: the Saudi-Brazilian traditional arts,” will offer a unique cultural and artistic experience, highlighting the artistic harmony between the two nations.
Following the success of the inaugural “Eltiqa” event with South Korea in 2023, this second edition reaffirms the Royal Institute of Traditional Arts’ commitment to fostering international cultural dialogue.
The CONEXAO program will feature five traditional Saudi performances and five Brazilian performances, culminating in a blended dance that integrates traditional artistic elements from both nations.
Additionally, a collaborative artwork created by two female artists from Saudi Arabia and Brazil will be showcased.
The event will include over 15 cultural activities, such as workshops and educational sessions on performing and visual arts, aimed at enhancing cultural understanding and strengthening connections between the two cultures.
CONEXAO is part of the institute’s initiatives to promote artistic movement and international cultural exchange in the Kingdom.
It aligns with the objectives of Saudi Vision 2030 by creating new cultural platforms to raise awareness of traditional arts and supporting efforts to preserve and share them locally and globally.
AlUla’s vision based on strong partnerships, holistic development, says royal commission official
- Ben Hudson highlights pacts with global investors and nations
- Plan includes $31.9bn contribution to Kingdom’s GDP by 2035
DAVOS: Taking a socially and economically responsible approach to development and working closely with committed partners is the key to fulfilling AlUla’s potential.
This is according to the Royal Commission for AlUla’s Chief Development and Construction Officer Ben Hudson, who spoke to Arab News at the World Economic Forum in Davos this week.
Hudson also emphasized the commission’s commitment to cultural preservation in transforming AlUla into a global destination.
Hudson underscored the RCU’s alignment with Saudi Arabia’s Vision 2030 reform program. “(The) RCU is unlocking AlUla’s economic, investment, and touristic potential through comprehensive regeneration, integrated partnerships, and inclusive sustainable development.”
Highlighting the AlUla Sustainability Charter as a blueprint for the organization’s initiatives, he said the RCU was also focused on revitalizing the built environment, community empowerment, and light-touch tourism.
Citing the example of the Dar Tantora The House Hotel, he said this was tangible proof of its plan in action, where the blending of traditional materials with local expertise has created new socio-economic opportunities while preserving the cultural heritage of the area.
Hudson was keen to highlight the RCU’s plans to contribute SR120 billion ($31.9 billion) to Saudi Arabia’s gross domestic product by 2035, driven by sustainable tourism and investment.
In Davos, Hudson said the RCU was looking to foster global partnerships to accelerate AlUla’s regeneration.
“We are building on AlUla’s position as an ancient crossroad of civilizations, transforming AlUla into the world’s largest living museum, and a place for our community to thrive, (and this) can only be achieved when we work together,” he said.
“Our first strategic partnership was established with France, almost at RCU’s inception. Since then, we’ve grown our network, establishing partnerships with China, Italy, the UK, and world-class partners from the US, among others.
“We continue to make progress in evolving our partnership portfolio by working with UNESCO, the International Union for Conservation of Nature, the World Bank, and many others,” he said.
These collaborations enable billions of dollars in private sector investment across hospitality, real estate, cultural conservation, and infrastructure.
Hudson emphasized the importance of co-investment, inviting partners to join in developing key infrastructure, such as power and water, and creating vibrant public spaces. “This gives our partners confidence and provides a platform for sustained engagement, be it with our community or across the business landscape,” he said.
Preserving AlUla’s rich cultural heritage remains central to the RCU’s mission. Hudson described the area as a “hidden gem,” now revealed to the world, with strategies in place to balance conservation with growth.
Collaboration with organizations including the International Council on Monuments and Sites has enabled the creation of Heritage Impact Assessments to protect cultural areas while facilitating new construction, he said.
“Our goals are shaped by community feedback, from the people who stand to benefit the most, whose culture and heritage make AlUla what it is,” he explained.
The RCU’s short-term goals focus on making AlUla a livable destination that embodies the Quality-of-Life Program of Vision 2030, by attracting investment, enhancing infrastructure, and creating opportunities for local and global stakeholders.
Looking to the future, Hudson said the RCU’s commitment was to “creating a destination built around a vibrant culture and ancient heritage —somewhere to live, work, invest, and grow.”
AlUla strengthens global presence with LeBron James, UIM E1 World Championship
- Team AlUla championed by LeBron James will take part in the UIM E1 World Championship presented by PIF
- Title partnership centers around AlUla’s ambition as a premier sports and adventure hub, dedication to supporting high-profile international events
ALULA: AlUla has strengthened its global sporting presence with LeBron James launching a new team in the UIM E1 World Championship presented by the Saudi sovereign wealth fund PIF in the world’s first all-electric race boat championship.
Named after the ancient oasis city in northwestern Saudi Arabia, Team AlUla Championed by LeBron James will compete in the 2025 E1 season, beginning with the E1 Jeddah GP on Jan. 24-25, and will be piloted by talented racers Rusty Wyatt and Catie Munnings.
The partnership centers around AlUla’s ambition as a premier sports and adventure hub, and its dedication to supporting high-profile competitions and sportspeople across the world, a press release issued on Friday said.
Central to AlUla’s development as a destination is the enrichment of its local community — a commitment that closely aligns with LeBron James’ philanthropic efforts in his hometown of Akron, Ohio.
The E1 all-electric race boat series is also in line with AlUla’s commitment to sustainability and comprehensive regeneration, evident in the city’s approach to holistic tourism, which manages visitor numbers, boosts environmental awareness and engages the community in conservation.
Core to its strategy is the AlUla Sustainability Charter, which guarantees the preservation of the natural and historical integrity of the area amid ongoing development.
This commitment is highlighted by initiatives such as designating 50 percent of AlUla as nature reserve and investing in eco-friendly infrastructure.
Rami AlMoallim, vice president of destination management and marketing at the Royal Commission for AlUla, said: “Our partnership with E1 and LeBron James marks a significant moment for AlUla, built on a shared commitment to conservation and community, spanning our desert landscapes to the world’s seas.”
“This collaboration highlights the deep interconnectedness of our environments and the power we all have to make a change. As a champion of regeneration and wildlife conservation, AlUla sees electric boat racing as an opportunity to redefine the future of sports and innovation and we are thrilled to be part of such a visionary partnership,” AlMoallim said.
As a growing heritage luxury boutique destination, and home to Hegra, Saudi Arabia’s first UNESCO World Heritage Site, AlUla has become known for blending history with innovation as it champions world-class home-grown sporting events such as Richard Mille AlUla Desert Polo, AlUla Trail Race, AlUla Tour and more.
Through AlUla’s partnership, Team AlUla Championed by LeBron James will visit iconic host cities such as Doha, Monaco and Miami, reinforcing its status as a premier global destination.
Saudi authorities foil attempt to smuggle $35m worth of captagon pills
RIYADH: The Saudi Zakat, Tax and Customs Authority has thwarted an attempt to smuggle over 1.4 million captagon pills into the Kingdom through the Jeddah Islamic Port.
According to the authority, the pills were found inside a shipment during customs procedures and live detection.
Coordination with the General Directorate of Narcotics Control led to the arrest of the intended recipients of the seized items in the Kingdom.
Captagon, a type of amphetamine, is used predominantly by young men and teenage boys across the Middle East and has a street value of between $10 and $25 a pill, according to research by the International Journal of Addiction Research.
