As an Overseas Pakistani, I would agree transferring money through the banks is such a hassle, people use other means. But considering the benefit, the government would be better off getting the issues sorted out with transferring and depositing, then taking the $1 billion and agreeing to the terms of the IMF, that could undermine the national financial sovereignty and long term export potential.What is the end goal here anyway? Keep taking loans from IMF and accrue more debt?
Did you know that expats in foreign countries cannot even deposit money in Pakistani bank accounts? Banks like HBL refuse to transfer the money. We all know where such dictation is coming from. Pakistani banks and other institutions share all kinds of financial information regarding expats with Western nations.
The myth that overseas Pakistanis living in Western nations can contribute economically is just that. The government hasn't got a leg to stand on.
Overseas Pakistanis would contribute if the reforms needed to the financial regulations and banks were carried, such that we could be assured there would be any improprieties, and growth takes off. What could be invested is retirement money, and not just from overseas Pakistanis but the pension funds around the world looking for solid returns on their investments. It’s what’s being done by the Indian financial system; getting foreign pension funds to invest in their country.
At the very least, if we can’t get our financial channels sorted out with the western countries, if we make the needed reforms to generate steady economic growth, we can try to seek funding from Chinese pension funds and Gulf Arab sovereign wealth funds. The Chinese pension funds are probably looking for a stable investment destination, because the returns in the Chinese real estate sector among other may not be generating the returns they had hoped for, and the Chinese government may limit cash flowing out of their country. Gulf Arab countries are always looking to diversify their investments and look into industries outside of petrochemicals, agriculture and mining with value added products could be it for them. If we make the reforms to the financial sector, we may be able to attract more Chinese and Gulf Arab investment, not loans.
Then cash flowing into the Pakistani banking sector would allow our own banks to loan the government the money. Hopefully then the government won’t have to go to the IMF ever again.