Investment of remittances in labour-intensive market urged

Islamabad: Dr. Atiq-ur-Rehman of the International Islamic University (IIU) has said that Pakistan should divert annual investment of remittances away from real estate to labour-intensive market for making them more productive.
He was speaking at a roundtable discussion on 'Valuing worker remittances in Pakistan and their utilisation for achievement of national goals' organised by the Sustainable Development Policy Institute.
Dr. Rehman opined that a portion of annual remittances should be invested in energy sector, adding that Pakistan receives about 33 per cent of its remittances through informal channel that puts the number at $25 billion. Out of it, he said, 81 per cent are parked in the real estate sector. He said fiscal reforms should be initiated for the purpose. He said that the Gulf region in particular may generate demand for labour.
Dr. Abdul Jabbar, also from IIU, observed that investment made in the field of energy would help create jobs and reduce energy crisis in the country. He asked for building more dams, where work is labour-intensive and is beneficial in eliminating electricity crisis and can help in barricading against floods.
Pakistan Institute of Development Economics Joint Director Dr. Ghulam Muhammad Arif said that most of the migrant workers come from central Punjab, Khyber-Pakhtunkhwa and urban Sindh. As the migrant workers set up businesses on their return, he said, job opportunities are created and poverty is alleviated.
He also highlighted the volatility in the real estate sector. In a nutshell, he said, the remittances are spent on consumption and future economic security at the household level, hence it was difficult to pool them as investment.
Dr Khurram Mughal of the Comsats emphasised that the government needs to make policies to ensure sustainability of the immigrants income, by endorsing different insurance programmes. He also proposed establishment of a mutual fund for channelising this particular kind of investment.
Wrapping up the discussion, Dr Sajid Amin Javed of the SDPI said that we needed to be careful on estimates, as the Gulf market was becoming more open and welcoming labour from India and other countries of the region.