alBaraka moot opens: Need stressed for exporting quality, skilled professionals

KARACHI: alBaraka Forum for Islamic Economy in collaboration with the Islamic Chamber of Commerce and Development (ICCD) on Monday hosted the 2nd alBaraka Regional Conference at a local hotel.

Economic experts at the inaugural session of the conference titled “Empowering OIC Nations: Unveiling The Crucial Role of Home Remittances In Pakistan,” underlined the need for exporting quality and skilled professionals abroad.

The conference served as a platform to discuss the multifaceted aspects of home remittances and their far-reaching impacts in shaping the economic growth tracks of nations in general and Pakistan in particular.

In his address of welcome, Yousef Hassan Khalawi, Secretary-General of the alBaraka Forum for Islamic Economy said that Pakistan as part of the OIC plays its significant role in promoting economic integration through home remittances.

“Islamic financial institutions facilitate these remittances, encouraging recipients to invest sustainably in local businesses and welfare programs,” he said.

Collaboration between governments and financial institutions is essential to establish secure, user-friendly, and legal channels for remittances and foster linkages with international financial institutions, he added.

He also talked about Islamic banking system as an alternative solution to the economic and financial problems of the world. A new alternative system besides the capitalism is the Islamic one, he added.

As a key note speaker, Dr Ishrat Husain, former SBP Governor, said that the Islamic banking system has the potential to offer solutions to the economic problems. “Something we have to pursue vigorously,” he added.

He encouraged the “brain drain” - from the county, saying that skilled, talent and quality professionals though contribute to the other nations economies but also acquire expertise in return, besides remitting foreign exchange to their countries.

Zulfiqar Ali Khokhar, Head of Pakistan Remittance Initiative SBP, informed the participant in his key note address about the PRI role and its established in 2009, besides highlighting the remittance infrastructure including cash on the counter payment facility.

He said ‘Sohni Dharti’ is a remittance program and serves as a digital platform. He said that there are also incentives for the market players and consumers. He said that the Islamic banks can grow their home remittance services up to 15 percent, besides enhancing their outreach and marketing.

As another keynote speaker, Dr Mufti Irshad Ahmad Aijaz, Chairman Shariah Advisory Committee SECP and SBP saw the conversion of the economy as a challenge to which the country’s financial players are not prepared yet. He called for a research in Islamic banking system, besides the existing one.

He also underscored the need for a vigilance to counter the rampant financial scams on the social media and mobile apps. He questioned whether there are any plans in hand for research in the Islamic banking system to meet the challenges that may arise decades after.

Dr. Ahmad Kawesa Sengendo, Assistant Secretary-General for Economic Affairs of the OIC in his key note address highlighted the remittances in and outflows within the OIC members. He also advised to the countries to export quality and skilled professional abroad, though he held the brain drain of talent workforce a cause for the economic slowdown in their home countries.

He also expressed worries over the poor living standards of the migrants abroad and their deadly Mediterranean voyages. He questioned that why people immigrate to other countries and hoped that the Islamic economic system will grow.

The event brought together leading experts, decision-makers, and stakeholders to engage in dialogue about strengthening Islamic finance tools to achieve the Sustainable Development Goals and align remittance strategies with sustainable development objectives in a globally changing remittance landscape.

According to the Saleh Kamel Islamic Economy Database, Pakistan received around $150 billion in home remittance from 2017 to 2022. This ranks Pakistan fifth among the top remittance receiving countries in 2022 with $29.9 billion.

Global remittances reached $758 billion in 2022, with OIC countries receiving 25.5 percent of this amount, over $193 billion. Home remittances are crucial for Pakistan as they constituted 33 percent of total imports, making it the second highest among the OIC countries and fifth globally in 2022.

The conference conclusively put forth policy frameworks and future outlooks for home remittances, including suggestions to streamline remittance flows so they contribute to sustainable economic growth.

The stakeholders also delved into future trends and outlook for home remittances in Pakistan and emphasized the need to collectively work on innovative strategies to further enhance the positive impact on the national economy.

Copyright Business Recorder, 2024