The Pakistani government is actively pursuing a government-to-government (G2G) agreement with Saudi Arabia and the United Arab Emirates (UAE) to secure upfront foreign currency repatriation against future workers’ remittances, according to Business Recorder.
The Finance Ministry is set to brief the Executive Committee (EC) of the Special Investment Facilitation Council (SIFC) about this initiative in their upcoming meeting on January 24.
Saudi Arabia and the UAE are significant contributors to Pakistan’s foreign exchange through remittances sent by Pakistani workers.
The meeting will address several key issues, including the progress of negotiations with the UAE, recommendations for insurance sector reforms, and the proposal of the G2G agreement with Saudi Arabia and the UAE.
The EC will also discuss facilitating the upfront consideration of foreign currency against future workers’ remittances.
The Governor of the State Bank of Pakistan (SBP), along with Secretaries of Foreign Affairs and Information and Broadcasting, will brief the EC on various financial matters.
Furthermore, discussions will cover settlements in Pakistani Rupees for imports and exports, issues with US company remittances, and banks involved in unlawful businesses.
The Power Division will share recommendations to tackle the energy sector’s circular debt, which has escalated to Rs5.7 trillion.
Updates on stakeholder consultations for revised tariff design, hydel projects, and strategies for hydro IPPs will also be discussed.
The Petroleum Division is set to update on several fronts, including the stance of Saudi Arabia/SINOPEC, progress on the Iran-Pakistan pipeline, the TAPI project, and the gas supply strategy.
Additionally, the division will present studies on gas supply and potential policy for LNG supply to domestic consumers.
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The Pakistani government’s pursuit of G2G agreements with Saudi Arabia and the UAE reflects a proactive strategy to enhance economic ties and secure citizens’ financial well-being. With a focus on remittances, diplomatic efforts, and upcoming discussions, the initiative demonstrates commitment to economic stability and international collaboration for mutual benefit.