ISLAMABAD, Feb 13: The government is expecting $2 billion foreign remittances during 2001-02, by the overseas Pakistanis, owing to fast improving economic environment.

Official sources said here on Wednesday that during the first six months (July-December) of the current fiscal, remittances had risen to $982.32 million against $609.16 million of the corresponding period in 2000-01.

“And now our assessment is that these remittances will reach to roughly $2 billion by June 30 this year”, said an official.

The government is considering a proposal to offer more incentives to the overseas Pakistanis for getting their remittances transferred through normal banking channels.

The sources said that while new anti-money laundering laws were in the offing to discourage Hundi and Hawala transactions, the Overseas Pakistanis Foundation (OPF) and Board of Investment (BoI) were preparing a package to ensure protection of overseas Pakistanis’ investments/dollar accounts, and at the same time offering them a ‘reasonable return’ on their investment.

The government, the sources said, would create an institutionalised set up to attract Pakistani expatiates’ investments in the country. The Small and Medium Enterprises Authority (Smeda), and small industrial corporations of Sindh and Punjab are particularly being involved to have joint ventures with the expatriates in various fields.

“There is a possibility of creating a new institution for this purpose other than Smeda and small industrial corporations”, said another official. The government was also considering to set up small industrial corporations in other part of the country, he added.

The economic environment, the sources said, also favoured to send more Pakistanis abroad for employment purposes.

There had been 10 to 15 per cent increase in the export of manpower during the first six months of the current fiscal. The number, the officials said, might now increase by 20 to 25 per cent during 2001-02.

The government would also take new measures to improve the performance of the Pakistani banks abroad which failed to have got foreign remittances channelised through banks due to their “lethargic and careless culture”.

But, the sources said, the government would take action against those bankers who would not improve their performance, and in case of failure, they would immediately be recalled, and could be sacked.

According to details, foreign remittances of $273.96 million were sent from the United States during the first six months of 2001-02 against $62.62 million the corresponding last year. While the expatriates remitted $61.10 million from the United Kingdom, $221.76 million from the United Arab Emirates, $27.53 million from Oman, $169.98 million from Saudi Arabia, $13.41 million from Qatar, $3.22 million from Norway, $34.61 million from Kuwait, $2.45 million from Japan, $9.45 million Germany, $14.58 million from Bahrain and $113.84 million from other countries against $41.32 million, $125.88 million, $19.78 million, $167.81 million, $7.47 million, $3.24 million, $81.88 million, $1.65m, $4.88m, $2.17m, $12.85m and $40.58m respectively during the same period in 2000-01.