- Remittances should be channeled into productive sectors to drive sustainable national economic development
Interview with Mr. Kaukab Iqbal — Chairman Consumers Association of Pakistan (CAP)
PAGE: Tell me something about yourself, please:
Kaukab Iqbal: I am Chairman of the Consumers Association of Pakistan (CAP), an organization committed to protecting consumer rights, promoting transparency, and encouraging responsible economic practices in Pakistan. For many years, I have been actively engaged in advocating for fair market systems, consumer awareness, policy reforms, and good governance. Our mission at CAP is not only to safeguard consumers but also to contribute constructively to national economic dialogue. I firmly believe that economic stability, consumer protection, and responsible policymaking are deeply interconnected. A strong consumer base strengthens markets, and strong markets strengthen the nation.
PAGE: Remittances play a vital role in easing financial pressures on the economy and in supporting household income. What has the incumbent government done to further remittances?
Kaukab Iqbal: Remittances are indeed a backbone of Pakistan’s external sector. The incumbent government has taken several measures to encourage formal remittance channels, including:
- Incentivizing banks and exchange companies to facilitate faster transfers
- Digitalizing remittance systems
- Offering policy stability to overseas Pakistanis
- Improving exchange rate transparency
- Strengthening anti-hawala enforcement mechanisms
Additionally, efforts have been made to build trust with overseas Pakistanis by introducing schemes that encourage investment in real estate, Roshan Digital Accounts, and other structured financial platforms.
However, sustaining growth in remittances requires continuous trust-building, exchange rate stability, and reduction in informal transfer channels.
PAGE: There is a debate that overseas Pakistanis cannot be a dependable pillar of long-term economic stability. Some alternative must be explored. What is your perspective?
Kaukab Iqbal: Overseas Pakistanis are a tremendous national asset. Their remittances provide stability during crises and help millions of households survive inflationary pressures. However, relying solely on remittances for long-term economic stability would not be prudent. Remittances are influenced by global economic conditions, employment trends abroad, and geopolitical dynamics—factors beyond Pakistan’s control. They should be seen as a supporting pillar, not the primary foundation. Long-term stability must come from domestic productivity, industrial growth, and export expansion.
PAGE: There is little disagreement that remittances provide timely relief whereas exports bring sustainable growth. Do you concur?
Kaukab Iqbal: Yes, I concur with this perspective. Remittances provide immediate liquidity support, strengthen foreign exchange reserves, and help stabilize the currency in the short term. Exports, on the other hand, generate recurring income, enhance industrial capacity, create employment, and improve global competitiveness. Sustainable economic growth requires increasing value-added exports rather than relying only on inflows from abroad.
A balanced strategy is essential—leveraging remittances for investment while aggressively expanding export capacity.
PAGE: Lasting economic stability can emerge only from internal economic measures such as productive investment, export-led growth, agricultural modernisation, skills aligned with domestic industry and sound governance. What is your standpoint in this regard?
Kaukab Iqbal: I strongly agree that lasting economic stability must be built internally.
Pakistan must prioritize:
- Productive and industrial investment rather than speculative growth
- Export-led policies focusing on value addition and diversification
- Agricultural modernization through technology and efficient water management
- Technical and vocational education aligned with industry demand
- Transparent governance and accountability mechanisms
Without structural reforms and institutional strengthening, temporary inflows—whether remittances or loans—cannot guarantee long-term prosperity.
In my view, remittances should be strategically channeled into productive sectors so that they become catalysts for sustainable development rather than merely consumption support.