ISLAMABAD: Pakistan is looking at relaunching its Foreign Exchange Remittance Card (FERC) with fresh incentives, including a tax-free import of luxury hybrid vehicles, to facilitate overseas workers and attract more remittances through legal channels, Sayed Zulifkar Bukhari, prime minister’s special assistant for overseas Pakistanis, told Arab News on Friday.
“In recognition of our overseas Pakistanis who utilize banking channels to send money back home, my ministry has proposed to reward them for their contribution to the national exchequer through duty-free import of a hybrid car of up to 3,000cc engine capacity provided that an expatriate remits a minimum of $100,000 in two years,” Bukhari said during a phone interview, adding that the incentives will be offered on a “hybrid vehicle as it is environment friendly.”
Ministry of Overseas Pakistanis (MOP) has sought feedback from its commerce division for this purpose, he said.
Overseas workers in GCC countries are the primary contributors of remittances to Pakistan, with Saudi Arabia and the UAE forming the chunk.
“We are going to relaunch the FERC by the end of January 2020 which will have many advantages for overseas Pakistanis. It would be in tiers of platinum, gold and bronze depending on the amount of remittances,” Bukhari said, adding that the card will have other features, such as hotel discounts, free access to airport lounges, discount on PIA tickets, various restaurants, to name a few.
He said that, through the move, the government is trying to encourage overseas Pakistanis to make optimal use of the remittance card and the facilities on offer.
“We are trying to get discounts for our card holders and will include more items in the card. We have also asked many departments to send us information about proposed privileges to be extended by their organizations and departments to overseas Pakistanis,” he said.
Bukhari added that these initiatives will also help reduce the use of illegal channels to remit money from abroad. “I will be backing this initiative with full force so in time we can kill the menace of hundi/havala,” he said.
The Ministry of Finance introduced the FERC in September 2001 before assigning the Overseas Pakistanis Foundation (OPF) to oversee the implementation process.
It is estimated that remittances from eight million overseas Pakistan will rise 5 percent to a record $23 billion during the ongoing fiscal year. Additionally, latest data from the State Bank of Pakistan shows remittances in the third quarter of 2019 declined to $5.478 billion from $5.747 billion in the preceding quarter.
Country-wise details showed that inflows from Saudi Arabia amounted to $468.18 million in October 2019, compared to $494.53 million in the same month of the previous year.
Meanwhile, Pakistanis living in the UAE remitted $398.96 million last month compared to $419.41 million in the same period of the previous year.
Pakistani businessman, Faisal Altaf, who has been residing in the UAE from the past 30 years, welcomed the initiative but expressed skepticism on the success of the project citing pressure from the local automobile industry. 
“It is a very good move and will improve countries foreign revenue dramatically because this incentive will encourage a lot of overseas Pakistanis to use proper channels to send their money to get a chance to bring in a duty-free car,” Altaf told Arab News from Dubai via phone, adding that the government has to stop the misuse of this facility by limiting it from being used for commercial purposes.
“If the government can withstand the pressure from local auto manufacturers and ensure non-commercial usage of the scheme, then it can sustain and can be very beneficial both for the country as well as overseas Pakistanis,” Altaf said.