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
Saudi Arabia, Estonia strengthen cyber defense cooperation
- Renowned for its leadership in digital governance, Estonia sees cybersecurity as central to its partnership potential with Saudi Arabia, building on years of regional engagement through its technology firms
RIYADH: Estonia aims to deepen defense, cybersecurity, and artificial intelligence cooperation with Saudi Arabia as both nations look to advance technology‑driven defense and cybersecurity capabilities.
Hanno Pevkur, Estonia’s minister of defense, told Arab News at the World Defense Show in Riyadh on Monday that Estonia’s defense industry is eager to contribute to the Kingdom’s fast‑growing defense ecosystem.
“In the modern world, cooperation built on trust and technology is the best defense,” he said. “It is important for us to be here because we clearly see there is a possibility to increase cooperation, not only bilaterally between Saudi Arabia and Estonia, but across the region.”
At Estonia’s pavilion, a cooperation agreement was signed between an Estonian company and a Saudi firm during the show, he noted.
Pevkur also said Estonia’s defense sector has expanded rapidly in recent years, driven by technological innovation and partnership.
“Our defense industry is growing very rapidly, and we continue to see strong momentum,” he said.
He said Estonia’s strengths lie in digital and smart‑system integration rather than large‑scale weapons production.
“We will not build airplanes or tanks, but what we can do is integrate robotics, automation and drones to make existing systems smarter,” he said.
The minister said effective defense collaboration must link businesses and governments to achieve meaningful results.
“When we want to have real cooperation, we need it on all levels,” he said. “The biggest client for any defense company is the government, so we must treat this as one ecosystem where the public and private sectors work hand in hand.”
Renowned for its leadership in digital governance, Estonia sees cybersecurity as central to its partnership potential with Saudi Arabia, building on years of regional engagement through its technology firms.
Pevkur said several Estonian companies, including Nortal, have already assisted Gulf governments in developing open IT and digital‑service systems.
“As the most digitalized nation in the world, almost every service in Estonia can be done online, except getting married,” he said. “But with such digitalization, we also need strong cyberdefense.”
He said data protection and digital resilience are treated as matters of national sovereignty in Tallinn, the capital of Estonia.
“Data is what we own. When someone steals that data, it becomes a serious threat,” he added. “That is why cyberdefense is not just about technology, it is about trust, sovereignty and protection.”
Pevkur said Saudi Arabia’s advances in AI offer promising opportunities for collaboration.
“I know that Saudi Arabia is doing great work when it comes to AI,” he said. “For us, as a small country with limited human resources, AI is essential not just for defense but for everyday life.”
Pevkur added that Estonia has launched a national AI strategy to promote responsible development and closer coordination between government and industry. One Estonian company, he said, has developed a system that allows a single operator to control hundreds of drones through AI.
“It is quite easy to put a weapon into the hands of a robot, but we also need to define who is accountable for its actions,” he said.
“The big question for the future is whether we can allow a war to be fought entirely by AI, or if humans must always make the final ethical decisions.”
He said in his conclusion that governments must reach a common understanding on how AI will be used and regulated on the battlefield.
